"Default" occurs when?
A. bond issuers fail to make promised payments.
B. corporations go bankrupt and stock becomes worthless.
C. bond purchasers fail to pay full price for a bond.
D. stocks are not federally insured.
A. bond issuers fail to make promised payments.
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For negotiations to eliminate an externality to be successful
A. one person must be willing to benefit by less than the cost of the externality. B. one person must benefit by double the cost of the externality. C. both parties must agree on a mutually beneficial trade. D. both parties must have property rights.
In the long run, a perfectly competitive firm will
A) be able to make an economic profit. B) produce but incur an economic loss. C) make zero economic profit. D) not produce and will incur an economic loss equal to its total fixed cost. E) not produce but not incur an economic loss.
With normally-sloped IS and LM curves, an increase in government spending ________ the interest rate, which ________ autonomous planned expenditure, resulting in a final increase in income ________ than what the government spending increase would
have produced in the Chapter 3 model. A) lowers, raises, greater B) lowers, lowers, greater C) raises, lowers, less D) raises, raises, less E) raises, raises, greater
In the neoclassical growth model, if two countries are exactly the same but one has a lower depreciation rate, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state. b. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state. c. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state. d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.