When all else is held constant, during recessions government
(a) revenues and expenditures increase.
(b) revenues increase and expenditures decrease.
(c) revenues decrease and expenditures rise.
(d) revenues and expenditures decrease.
(c)
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Refer to Figure 22-4. The movement from A to B to C illustrates
A) an improvement in technology. B) diminishing returns to labor. C) a decline in capital per worker. D) diminishing returns to capital.
A ________ is a governance structure where owners are not personally liable
A) sole proprietorship B) partnership C) mixed enterprise D) corporation
Markets without externalities create pollution
Indicate whether the statement is true or false
If the Fed's monetary policy causes a substantial increase in interest rates, what is the most likely impact on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to interest rates.