As the LM curve becomes flatter, an unexpected decrease in consumer confidence:

Select one:

a. is more likely to cause stock prices to rise.

b. is more likely to keep stock prices constant.

c. will cause a relatively large increase in output and relatively large increase in the interest rate.

d. will cause a relatively small increase in output and relatively small increase in the interest rate.

e. is more likely to cause stock prices to fall.

Suppose the following situation exists for an economy: Kt +1/ N = Kt/ N. Given this information, we know with certainty that:

Select one:

a. investment per worker equals depreciation per worker in period t.

b. saving per worker is less than depreciation per worker in period t.

c. the economy is operating at the golden rule equilibrium in period t.

d. saving per worker is greater than depreciation per worker in period t.

e. the rate of growth of output is positive period t.

The financial regulatory system in the United States largely covers which sector of the financial system?

Select one:

a. sovereign wealth funds

b. investment banks

c. mutual funds

d. commercial banks

Given the narrow interpretation of technology, technology will include which of the following?

Select one:

a. the political environment

b. the organisation and sophistication of markets

c. how well firms are run

d. None of the above.

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