That some firms are engaged in more than one type of business is explained, in some cases, by
a. moral injunctions such as the Golden Rule.
b. the existence of charitable organizations.
c. government regulations that discourage the internalization of externalities.
d. the fact that the internalization of externalities sometimes coincides with the self-interest of the relevant parties.
d
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According to the saving and investment equation, if net foreign investment rises by $60 million,
A) domestic investment will rise by $60 million. B) private saving will fall by $60 million. C) national saving will fall by $60 million. D) national saving will increase by $60 million.
Real money demand in the economy is given by
L = 0.3Y - 600i, where Y is real income and i is the nominal interest rate. In equilibrium, real money demand L equals real money supply M/P. Suppose that Y equals 2000 and the real interest rate is 5%. (a) At what rate of inflation is seignorage maximized? (b) What is the maximum amount of seignorage revenue?
A subsidy:
A. increases the amount that buyers pay for a good. B. reduces the amount that buyers pay for a good. C. reduces both the amount that buyers pay and the amount sellers receive for a good. D. increases both the amount that buyers pay and the amount sellers receive for a good.
Brandon, Haley, Melissa, and Jeffrey each won $1,000 in their office football pool. According to Keynes's absolute income hypothesis, which of them would be most likely to spend the most out of their winnings?
a. Brandon, Haley, Melissa, and Jeffrey will spend the same out of their winnings b. Brandon, who earns $10,000 as a mail clerk c. Haley, who earns $25,000 as an account representative d. Melissa, who earns $50,000 as a software programmer e. Jeffrey, who earns $2 million as the CEO