Assume that the federal government wishes to counteract inflation with a policy that has the smallest impact on the federal budget. Which of the following would you recommend?
a. Increase transfer payments.
b. Increase government purchases.
c. Decrease government purchases.
d. Decrease transfer payments.
e. Increase personal income taxes.
c
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Refer to Figure 3.3. Based on the information in the above payoff matrix, identify each player's dominant strategy (if there is one) and the location of the Nash equilibrium
What will be an ideal response?
Which of the following statements is consistent with the views of Joseph Schumpeter?
A) An economy benefits from firms having market power because these firms are more likely to be able to commit funds for research and development. B) Enforcement of antitrust laws is necessary to promote competition among firms. C) A lack of competition discourages firms from developing new technologies. D) Research and development by competitive firms is responsible for most technological changes.
The owners of preferred stock
A) receive preferential treatment in the payment of dividends. B) have the same voting rights as owners of common stock. C) are the original owners of the corporation. D) have the same rights as bondholders.
Almost all event markets forecast accurately
Indicate whether the statement is true or false