In the fall of 1998 we saw an increase in the risk spread because:
A. there was a significant increase in U.S. income tax rates.
B. the Russian government defaulted on some of its bonds.
C. the risk spread always increases as we approach the end of the year.
D. there was an extraordinarily large amount of corporate fraud being reported in 1998.
Answer: B
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The value added of a producer is the
A) total amount for which all its products sell minus its change in inventories. B) value of its total sales once externalities are accounted for. C) value of its output minus the value of the inputs it purchases from other producers. D) quality-adjusted amount of its total sales less any commissions paid.
Over time the full-employment level of output in the United States has risen steadily
a. True b. False
Technological breakthroughs, such as the Internet, can be shown with a rightward shift of the aggregate supply curve.
Answer the following statement true (T) or false (F)
If the multiplier is 20 and income increases by $1000, then saving will increase by
A. $1000. B. $800. C. $80. D. $50.