6. Risk-averse people will choose different asset portfolios than people who are not risk averse. Over a long period of time, we would expect that A.every risk-averse person will earn a higher rate of return than every non-risk averse person. B.every risk-averse person will earn a lower rate of return than every non-risk averse person. C.the average risk-averse person will earn a higher rate of return than the average non-risk averse person. D.the average risk-averse person will earn a lower rate of return than the average non-risk averse person. 7.The real exchange rate equals the relative A.price of domestic and foreign currency. B.price of domestic and foreign goods. C.rate of domestic and foreign interest. D.None of the above is correct. 8.According to the theory of liquidity preference, an increase in the price level causes the A.interest rate and investment to rise. B.interest rate and investment to fall. C.interest rate to rise and investment to fall. D.interest rate to fall and investment to rise. 9.According to liquidity preference theory, the money supply curve is A.upward sloping. B.downward sloping. C.vertical. D.horizontal
6. Risk-averse people will choose different asset portfolios than people who are not risk averse. Over a long period of time, we would expect that
A.every risk-averse person will earn a higher
B.every risk-averse person will earn a lower rate of return than every non-risk averse person.
C.the average risk-averse person will earn a higher rate of return than the average non-risk averse person.
D.the average risk-averse person will earn a lower rate of return than the average non-risk averse person.
7.The real exchange rate equals the relative
A.price of domestic and foreign currency.
B.price of domestic and foreign goods.
C.rate of domestic and foreign interest.
D.None of the above is correct.
8.According to the theory of liquidity preference, an increase in the price level causes the
A.interest rate and investment to rise.
B.interest rate and investment to fall.
C.interest rate to rise and investment to fall.
D.interest rate to fall and investment to rise.
9.According to liquidity preference theory, the money supply curve is
A.upward sloping.
B.downward sloping.
C.vertical.
D.horizontal
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