One of the defining characteristics of a perfectly competitive market is what type of product ?

If real GDP equals aggregate planned expenditure, then inventories

A) fall below their target levels. B) rise above their target levels. C) equal their target levels. D) are either above or below their target levels depending on whether planned inventories are above or below their target levels. E) None of the above answers is necessarily correct because there is no relationship between inventories and aggregate planned expenditure.

The budget line in portfolio analysis shows that

A) the expected return on a portfolio increases as the standard deviation of that return increases. B) the expected return on a portfolio increases as the standard deviation of that return decreases. C) the expected return on a portfolio is constant. D) the standard deviation of a portfolio is constant. E) a riskless portfolio will earn a zero return.