When the Federal Reserve purchases a U.S. Treasury bond for $1 million by writing a check, when the check returns, the Fed's balance sheet will show:
A. only an increase in assets of $1 million.
B. only an increase in liabilities of $1 million.
C. an increase in assets and liabilities of $1 million.
D. an increase in assets and a decrease in liabilities of $1 million.
Answer: C
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If doubling the quantity of inputs more than doubles the quantity of outputs, the firm is experiencing
A. increasing returns to scale. B. decreasing returns to scale. C. constant returns to scale. D. increasing costs per unit of output.
When private benefits equal social benefits, it means that:
A. positive externalities are present in the market. B. negative externalities are present in the market. C. positive externalities are not present in the market. D. no externality of any kind is present in the market.
The federal government’s research and experimentation plan is a(n) _____________ to stimulate private sector investment in research.
a. economic prize b. subsidy c. collaboration d. tax credit
The innovation cycle is regarded as a long-wave cycle and it can last as long as
a. 500 years b. 100 years c. 75 years d. 30 years e. 10 years