In response to the financial crisis which followed the housing bubble collapse, policy-makers feared stimulating demand would cause:
A. inflation.
B. deflation.
C. stagflation.
D. hyperinflation.
C. stagflation.
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Factors that led to worsening conditions in Mexico's 1994-1995 financial markets, but did not lead to worsening financial market conditions in East Asia in 1997-1998 include
A) rise in interest rates abroad. B) bankers' lack of expertise in screening and monitoring borrowers. C) deterioration of banks' balance sheets because of increasing loan losses. D) stock market decline.
The gains from specific training in human capital tend to go to the
A. employing firm and not the individual. B. individual and not the employing firm. C. parents since they paid for the education in the first place. D. federal government in the form of higher taxes.
Under which one of the following conditions will economic theory indicate that all of a resource should be consumed in the current period?
a. Whenever the discount rate is positive b. When the marginal net benefits in the current period are always greater than the marginal net benefits in the future c. When substitute resources are available d. When the marginal net benefits in the future are not discounted e. When the users costs are positive Feedback
When governments grant patents:
A) producers earn profits that are substantially higher than would occur in a competitive market. B) consumers pay a higher price than they would in a competitive market. C) consumers are likely to pay lower prices than they would in a competitive market. D) Both A and B are correct.