According to traditional Keynesian economics, contractionary fiscal policy initiated by the federal government
Is an appropriate way to slow down an over-heated economy.
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Foreign direct investment is defined as
A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. B) funds allocated into a foreign stock market that represent an ownership share of firms less than 5 percent. C) purchasing both capital equipment and government bonds abroad. D) purchasing government bonds.
State universities and community colleges, the National Endowment for the Arts, public libraries, art galleries, and museums are all examples of
a. exclusive goods b. rival goods c. merit goods d. public goods e. private goods
The inflation rate in January of 2009 as measured by the CPI was zero. If inflation were to remain at zero for a long period, what would be the effect on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to interest rates.
What does not enter into the present value calculation of a college degree?
A. the cost of books B. lifetime wages of noncollege graduates C. wages of college graduates D. the cost of college tuition E. the value of one's scholarships