Suppose you are analyzing data for an economy in which Ricardian neutrality holds true. What happens if the budget deficit increases by 50?
a. Investments will increase by 50.
b. Investments will decrease by 50.
c. Private savings will decrease by 50.
d. Private savings will increase by 50.
d. Private savings will increase by 50.
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Refer to the scenario above. What is the probability of getting tails?
A) 25% B) 50% C) 75% D) 100%
Suppose Happy Cows has a marginal cost equal to 0.5Q and Free Cows has a marginal cost equal to 2Q.
A) All else equal, neither Free Cows nor Happy Cows can benefit from an accurate forecast. B) All else equal, an accurate forecast is more valuable to Free Cows than Happy Cows. C) All else equal, an accurate forecast has the same value to both Free Cows and Happy Cows. D) All else equal, an accurate forecast is more valuable to Happy Cows than Free Cows.
The annual rental rate for a machine is
a. the yearly depreciation and maintenance costs for the machine. b. the yearly interest costs associated with owning the machine. c. the initial purchase price of the machine divided by the number of years the machine is expected to last. d. the sum of the yearly depreciation, maintenance, and interest costs associated with owning the machine.
If the short-run Phillips curve was a straight line with a very steep slope, the inflation costs of reducing unemployment: a. are fairly low
b. are fairly high. c. depend on the current rate of inflation. d. rises as the economy approaches full employment.