Which of the following is NOT likely to affect investment?
A) variations in expected output
B) the nominal interest rate
C) the real interest rate
D) the tax treatment of depreciation allowances
B
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All else equal, compared to the case of a closed economy, monetary policy is ________ effective in an open economy with a ________ exchange rate.
A. more; flexible B. less; nominal C. less; real D. more; fixed
Orchards provide services to beekeepers because the bees use the pollen to make honey. This is an example of
A) a positive externality, and too many orchards exist in society. B) a positive externality, and too few orchards exist in society. C) a negative externality, and too many orchards exist in society. D) a negative externality, and too few orchards exist in society.
In the 1990s:
A. direct private investment to the DVCs increased and government-provided foreign aid decreased. B. both direct private investment and government-provided foreign aid to the DVCs increased. C. both direct private investment and government-provided foreign aid to the DVCs decreased. D. direct private investment to the DVCs decreased and government-provided foreign aid increased.
Consider the following game. You pick a card from a deck and each time you select an ace, you get $260. For all other cards you must pay $13. This game is a fair bet.
Answer the following statement true (T) or false (F)