The beta for General Motors (GM) is 0.5, the risk-free rate is 4%, and the market return is 9%. What is GM's risk-adjusted discount rate?

The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob is

A) risk averse. B) risk neutral. C) risk loving. D) risk premium.

In classical IS-LM analysis, the effects of a decline in desired investment include

A. an increase in the price level. B. a decline in the real interest rate. C. an increase in unemployment. D. a decline in output.