What is the main problem with government guarantees that socialize losses and privatize gains?
A. They encourage overly risky investments by insulating private investors from any losses.
B. The investments that do occur never generate production of goods underproduced by the
private sector.
C. They discourage private investment in worthwhile projects.
D. They tend to benefit foreign companies at the expense of domestic firms.
Answer: A
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In the United States, the main source of fluctuations in the current account balance is
A) exports of capital. B) net transfers. C) international debt. D) net exports. E) net interest.
A fiscal policy designed for maximum stimulus of economic growth must discourage current ________ and thus makes for, at least in the short run, a ________ even income distribution
A) consumption, less B) consumption, more C) private saving, less D) private saving, more
Cartels in the United States are
a. legal if price is competitively determined. b. legal if all firms in the industry agree to the terms of the cartel. c. legal if all conditions of the cartel are made public. d. illegal.
Jessica paid $7,000 for a bond with a face value of $6,000. She will be paid $400 annually as long as she holds on to the bond, until the bond's maturity date. The yield on the bond is
A) 6.67 percent. B) 5.71 percent. C) 15.0 percent. D) 80.0 percent.