One reason to expect higher growth under planned socialism
a. material balance planning
b. the dictator's use of coercion
c. growth based pricing policy
d. the dictator worries about consumption
e. the dictator can set a high investment rate
Question 2
An increase in the real risk-free interest rate causes the:
a. Preferred asset ratio for currency in circulation (C/D) to fall, which decreases the quantity of real loanable funds supplied.
b. Preferred asset ratio for customary reserves (U/D) to fall, which increases the quantity of real loanable funds supplied.
c. Preferred asset ratio for near money (N/D) to fall, which decreases the quantity of real loanable funds supplied.
e. None of the above.
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Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...