Figure 33-8
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In Figure 33-8, which of the following movements reflects the closing of a recessionary gap with an expansionary monetary and fiscal policy?
A. C to B
B. D to C
C. C to E
D. D to E
Answer: B
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Private property rights mean that:
A) individuals cannot be excluded from the consumption of goods and services regardless of whether they pay for them. B) individuals have a right to elect their representatives in the government. C) individuals can own businesses and assets, and their ownership is secure. D) the government does not own any resource used in production in an economy.
According to Adam Smith, individual self-interest
a. is a powerful force for economic progress when it is directed by competitive markets. b. is a powerful force for economic progress when individuals are wisely directed by a strong central government. c. is a major factor in retarding the economic progress of humankind. d. could be either a positive or negative force for economic progress, depending on the moral influences of political leaders.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
With a nominal interest rate of 4%, an expected inflation rate of 1%, and interest income taxed at a rate of 25%, what is the expected real after-tax interest rate?
A. 3% B. 1% C. 0% D. 2%