A monetized debt prompts:
A. a contractionary monetary policy.
B. an expansionary tax base.
C. an inflationary tax.
D. a contractionary fiscal policy.
Answer: C
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Over the past year, output grew 5%, capital grew 5%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?
A) 0.5% B) 1.0% C) 2.2% D) 2.8%
Retailers do not find it profitable to engage in promotional activities because
a. They reap the full benefits of the promotion b. They do not have to share the benefits of the promotion with the manufacturer c. They are wary of competing retailers' ability to "free ride" on their efforts d. All of the above
If the interest rate is 4%, in which of the following cases is the future value the largest?
a. An initial value of $1,000 deposited for 5 years. b. An initial value of $950 deposited for 6 years. c. An initial value of $900 deposited for 7 years. d. An initial value of $850 deposited for 8 years.
The country of Elbia has a GDP of $2,000 . consumption of $1,300, and government purchases of $400 . Which of the following is equal to $300?
a. domestic investment b. domestic investment plus net capital outflow c. domestic investment minus net capital outflow d. None of the above is correct.