Figure 32-3 Refer to the Following Diagram of the Open-Economy Macroeconomic Model

question 9

Multiple Choice

Figure 32-3
Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow.
​
Graph (a)
Graph (b) Graph (c) ​
-Refer to Figure 32-3. Suppose that the government goes from a budget surplus to a budget deficit. The effects of the change could be illustrated by shifting the

• A)demand curve in panel a to the right and the demand curve in graph (c) to the left.
• B)demand curve in panel a to the left and the supply curve in graph (c) to the left.
• C)supply curve in panel a to the right and the demand curve in graph (c) to the right.
• D)supply curve in panel a to the left and the supply curve in graph (c) to the left.

Calculate expected returns on various financial instruments including stocks and portfolios.

Grasp the concept of the risk premium and how it is determined for stocks and portfolios.

Calculate the weight of individual stocks within a portfolio.

Understand the relationship between risk-free rate, market rate, and the expected return of an investment.

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Definitions:

Stare Decisis

A legal principle that obligates courts to follow historical cases when making a ruling on a similar current or future case.

Predictability

The ability to accurately forecast future events or outcomes based on current or past information.

Judicial Decisions

Rulings made by courts interpreting and applying laws in specific cases, which can influence future legal actions.

Legislative Branch

One of the three branches of government responsible for creating and enacting legislation or laws.