Which of the following is an explanation for why the AD curve slopes downward?
A. The interest rate effect.
B. The laissez faire effect.
C. The cost effect.
D. The profit effect.
Answer: A
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The expectation of a random variable X that can take on any of N possible values, Xi with probability Pr[Xi], is denoted as E[X] and defined as:
a. E[X]=???XiPr[Xi]. b. E[X]=??XiPr[Xi]. c. E[X]=?XiPr[Xi]. d. E[X]=?XiPr[Xi].
Direct financing is distinguished from indirect financing because:
a. Direct financing is when a business borrows directly from pooled funds at a financial institution, and indirect financing is when it borrows in the bond or stock market. b. Direct financing is when a company borrows in the fixed-rate market, and indirect financing is when it borrows in the floating-rate market. c. Direct financing is when a business borrows in the bond or stock market, and indirect financing is when it borrows from pooled funds at a financial institution. d. None of the above.
During a year, the government of a country Orion imposed tariff on imported steel, arguing that imports had damaged the Orion steel industry. The government prohibited new investments in this industry and decided to phase out the tariff within the next eight years. This trade policy was based on the ________ argument in favor of trade protection
a. declining industries b. antidumping c. infant industry d. national defense
Suppose that a tire factory produces $825,000 of output and causes $70,000 worth of pollution as a result of production. The tire factory's official contribution to GDP would be ________ and its overall contribution to society would be ________.
A. $825,000; $895,000 B. $895,000; $825,000 C. $825,000; $755,000 D. $755,000; $825,000