In the United States, the median household income is ________ than the mean income, which means there are ________ households with low incomes than with high incomes

According to some New Keynesian theories, one possible rationale for active policy making is

A) growing competition in U.S. product markets. B) flexible prices. C) sluggish adjustment of the price level in response to changes in aggregate demand D) people are not rational and so do not react to incentives.

A stock is expected to pay a dividend of $2.50 per share indefinitely. The stock is expected to generate a return of 8 percent in the foreseeable future. Based on this information, a fair price of this stock would be

A) $25.00. B) $31.25. C) $20.00. D) Cannot be determined without additional information.