Holding other factors constant, if a change in tax laws discourages people from saving more for retirement, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; decrease
B. decrease; increase
C. decrease; decrease
D. increase; increase
Answer: A
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New money is created in the U.S. economy by
A) increased federal government expenditures. B) banks that create checkable deposits. C) the U.S. Treasury. D) U.S. Department of Mint. E) the U.S. Congress.
If the GDP deflator is less than 100, then for that year nominal GDP ________ real GDP
A) equals B) is less than C) is greater than D) may be greater than or less than
Which of the following is not a major institutional investor in the stock market?
A) Mutual funds B) Pension funds C) Insurance companies D) Commercial banks
If two firms expect to be in the market together for a long time, the benefit of underpricing will be large relative to the cost.
Answer the following statement true (T) or false (F)