Which of the following statements is most accurate about advanced economies?
A. Economies experience a positive growth trend over the short run but experience significant variability in the long run.
B. Economies experience a positive growth trend over the long run but experience significant variability in the short run.
C. Economies experience positive and stable growth over both the long run and short run.
D. Economies experience little long-run growth in output but can experience significant growth in the short run.
Answer: B
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Frank Murphy is considering how many snowmobiles to purchase for his snowmobile rental business. Below are his estimates of the number of snowmobile rentals per year, depending on the number of snowmobiles available.Number ofSnowmobilesYearlyrentals1902170324043005350After paying all non-interest expenses, expenses Frank expects to net $10 per rental. Each snowmobile costs $15,000. How many snowmobiles should Frank purchase if the real interest rate is 5.5%?
A. 1. B. 0. C. 2. D. 4.
A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield to maturity of
A) 3 percent. B) 20 percent. C) 25 percent. D) 33.3 percent.
Which of the following did not contribute to the farmer's worsening terms of trade during the period of 1875-1895?
a. A rapid increase in the supply of agricultural products. b. Output increases as a result of technological change during the period. c. A rise in demand for U.S. crops after the Civil War. d. The income elasticity of demand for most agricultural crops was less than one.
In a booming economy, fiscal policy automatically becomes:
A. contractionary as tax rates rise and welfare payments fall. B. expansionary as tax rates rise and welfare payments fall. C. contractionary as tax rates fall and welfare payments rise. D. expansionary as tax rates fall and welfare payments rise.