Which of the following is correct? Investment tax credits
a. can increase investment, but stimulating investment is not a key to ending a recession.
b. can increase investment, which is a key to ending a recession.
c. can not increase spending on investment goods, but stimulating investment is not a key to ending a recession.
d. can not increase spending on investment goods, but stimulating investment is a key to ending a recession.
b
You might also like to view...
When real GDP exceeds potential GDP, then the economy has
A) an inflationary gap. B) a below-full-employment equilibrium. C) a recessionary gap. D) None of the above answers are correct.
Suppose that Acme Widget is currently selling for $100 per share and you own a call option to buy Acme Widget at $75 per share. The intrinsic value of your option is
A) $25. B) $75. C) $100. D) not possible to determine in the absence of information on values of the share price of Acme Widget between now and the expiration date of the call.
After reports of the subprime mortgage crisis began to appear in the media, which of the following most likely caused housing prices to fall?
a. neoclassical theory b. cyclical expectations c. rational expectations d. Keynesian theory
If the opportunity cost of producing one more bushel of wheat is always equal to three bushels of corn, then the production possibilities curve will be
a. upward sloping b. bowed out c. U-shaped d. a straight line e. undefined