If inflation increased to 4% and unemployment was listed at 8%, which of the following policies would an economist most likely recommend using? Decrease the reserve requirement and buy bonds. Increase defense spending and increase the discount rate. Increase personal income taxes and sell securities bonds. Decrease funding for road projects and decrease the discount rate. Sell bonds and decrease personal income taxes.

How is the division of labor accomplished?

Which term refers to the cost that motivates an economic decision

The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?