Which is an example of an automatic stabilizer? As real GDP decreases, income tax revenues:
A. increase and transfer payments decrease.
B. and transfer payments decrease.
C. and transfer payments increase.
D. decrease and transfer payments increase.
Answer: D
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A patent issued by the government, gives a firm monopoly power on certain products or discoveries
a. True b. False Indicate whether the statement is true or false
Can central bankers set short-term interest rate targets and still control inflation in the long run or are these goals mutually impossible? Explain.
What will be an ideal response?
Suppose you will receive $500 at some point in the future. If the annual interest rate is 7.5 percent, then the present value of the $500 is
a. $411.26 if the $500 is to be received in 5 years and $338.95 if the $500 is to be received in 10 years. b. $348.28 if the $500 is to be received in 5 years and $242.60 if the $500 is to be received in 10 years. c. $291.11 if the $500 is to be received in 5 years and $272.89 if the $500 is to be received in 10 years. d. $291.11 if the $500 is to be received in 5 years and $236.49 if the $500 is to be received in 10 years.
The horizontal intercept of the intertemporal budget constraint is referred to as
A. the future value of present income. B. the future value of lifetime income. C. the present value of lifetime income. D. the current value of future income.