If expected inflation is 12 percent and the publicly regulated electric utility company is legally limited to a 10 percent rate of return, then we should expect
a. increased investment by the utility.
b. expansion of electric power generating capacity.
c. future power shortages.
d. excess investment by the electric utility.
c
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When the Fed is ________ it is ________
A) adjusting the amount of money in circulation; issuing government bonds B) issuing government bonds; conducting monetary policy C) adjusting the amount of money in circulation; conducting monetary policy D) regulating the nation's financial institutions; conducting monetary policy
The official settlements account records the change in official U.S. reserves
Indicate whether the statement is true or false
For a perfectly competitive firm with a known marginal cost and random demand, as the expected marginal revenue increases, the profit-maximizing quantity ________.
A) approaches zero B) increases C) does not change D) decreases
The best description of the economic ideology during World War I was __________
a. The belief that the economy could be strengthened by centralized coordination. b. The economy would work best with a strong commitment to the free market. c. The US should eliminate many federal agencies during World War I to make the government more efficient.