Which of the following would most likely discourage investment?
a) an increase in the selling price of a firm’s output
b) a reduction in the selling price of corporate stock
c) an increase in bond prices
d) a reduction in the rate of inflation
e) an increase in the optimal capital stock
b) a reduction in the selling price of corporate stock
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Suppose the nominal interest rate is 5% and the rate of inflation is 5%. The real interest rate is therefore
A) 0%. B) 1%. C) 5%. D) 6%.
Which of the following situations is used as a justification for government?
A. negative externalities B. removal from the prisoner's dilemma C. nonexcludable goods D. positive externalities E. all of the above
By 1774, the Southern colonies'
(a) share of total colonial wealth was the lowest. (b) wealth per capita was the highest. (c) land contributed very little to total wealth. (d) depended heavily on immigrant labor.
_________ tend to think about others and are less interested in self. They seek outside opinions
a. Introverts b. Extroverts c. Experts d. None of the above is correct