After an extended period of steady inflation at a constant rate,
a. people will anticipate inflation.
b. actual unemployment will approximate the natural rate of unemployment.
c. actual unemployment will be less than the natural rate of unemployment.
d. both a and b are true.
D
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The risk of financing a project by issuing common stock is borne by
A. the issuing firm only. B. the stockholders only. C. both the issuing firm and the stockholders. D. the government.
The government regulates the banking industry by
a. conducting frequent audits and examinations. b. limiting the kinds of assets that a bank may own. c. limiting the quantity of some kinds of assets that a bank may own. d. All of the above are correct.
Pollution imposes costs on people and firms other than those involved in producing or consuming the product that produces pollution.
Answer the following statement true (T) or false (F)
Relating to the Economics in Practice on page 374: Considerable evidence suggests that recently in the United States,________ has increased and ________ has stagnated.
A. the real wage for women; the real wage for men B. the real wage; the nominal wage C. the nominal wage of the average worker; executive compensation D. executive compensation; the real wage of the average worker