Which of the following is not a principal means by which corporations obtain money for investment?
A. Selling stocks
B. Selling bonds
C. Retaining earnings
D. Receiving dividends
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run
A) a decrease; a decrease B) a decrease; no change C) an increase; an increase D) no change; a decrease
Prospect theory can explain why
A) people tend to gamble on long odds with small expected utility. B) people tend to sell their losing stocks and keep their winning stocks. C) people should only sell their losing stocks. D) people should never play the lottery.
Three customers bought identical cellular phones this morning from Phil's Phone Shop. Amy bought one to call her mom and boyfriend. Brad's boss sent him to buy one to use to keep in touch with the office when he is out of his office. The local city
government had Cecilia, the town manager, buy one to receive calls while in the field. What are the different types of good classifications between the three cellular phones? Where will these purchases be recorded in GDP?