Assuming a horizontal aggregate supply curve, output will change when
a. monetary or fiscal policy changes.
b. monetary policy changes.
c. fiscal policy changes.
d. capital, labor, or technology changes.
e. all of the above
E
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If the present value equation used to calculate the price of a stock you are considering buying is "[$12 / (0.05 - 0.02)]," which of the following is correct, assuming that dividends will grow at a constant rate?
A) The dividend is $12 per share, the dividend growth rate is 5 percent, and the interest rate is 2 percent. B) The dividend is $12 per share, the dividend growth rate is 2 percent, and the interest rate is 5 percent. C) The stock price is $12, the dividend growth rate is 5 percent, and the interest rate is 3 percent. D) The stock price is $12, the dividend growth rate is 2 percent, and the interest rate is 5 percent.
Return to the market for cigarettes from the previous question. What per-unit tax could the government levy to eliminate the deadweight loss from the behavioral bias?
a. 0 b. 1 c. 50 d. 100