The financial crisis that began in 2007:
a. was predicted in detail by Alan Greenspan and Ben Bernanke.
b. was centered on subprime lending and the complex financial instruments based on subprime loans.
c. was caused by a downturn in the stock market.
d. None of the above are correct.
b. was centered on subprime lending and the complex financial instruments based on subprime loans.
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A sole proprietorship with unlimited liability and full control over daily operations is one form of business ownership
Indicate whether the statement is true or false
Which of the following is not an example of a capital good?
a. a pencil sharpener in an office b. an oven in a pizza restaurant c. a sawing machine at a local lumber yard d. a computer in a business e. a teacher's ability to speak two languages
Government policy concerning its spending and taxation is called
A. the quantity theory of money. B. fiscal policy. C. business cycles. D. monetary policy.
If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:
A. 5. B. 0.20. C. 0.80. D. 10.