The higher the beta,
A) the smaller the diversifiable risk.
B) the smaller the nondiversifiable risk.
C) the larger the diversifiable risk.
D) the larger the nondiversifiable risk.
D
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The strongest political pressure for a trade policy that results in higher protectionism comes from
A) domestic workers lobbying for import restrictions. B) domestic workers lobbying for export restrictions. C) domestic workers lobbying for free trade. D) domestic consumers lobbying for export restrictions. E) domestic consumers lobbying for import restrictions.
Suppose the central bank announces that it will permanently increase the inflation rate and there is central bank credibility
With adaptive expectations, expectations of inflation will adjust ________, and with rational expectations, expectations of inflation adjust ________. A) slowly; slowly B) slowly; immediately C) immediately; immediately D) immediately; slowly