The speed at which abnormal net income falls to zero is called
A) the balance sheet exposure.
B) the depreciation rate.
C) the decay rate.
D) the exchange rate.
C
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Real business cycle theory explains the business cycle as the result of
a. unstable investment demand. b. excess growth of the quantity of money. C. shocks to consumer spending habits d. fluctuations in productivity.
The best time to purchase the stock of a corporation capable of generating large earnings in the future is when
A) everyone expects its future earnings to be larger than they are now. B) the price of the stock is lower than it has been in recent years. C) the price of the stock is higher than it has been in recent years. D) you alone expect its future earnings to be larger than they are now. E) you know the corporation has already started to generate large earnings.