When the U.S. government runs a deficit, the resulting higher interest rate:
A. reduces firms' desire to invest, and "crowds out" domestic investment.
B. increases firms' desire to invest, but "crowds out" domestic investment.
C. reduces foreigners' willingness to invest in the U.S., but still "crowds out" domestic investment.
D. increases foreigners' willingness to invest in the U.S., which "crowds out" domestic investment.
A. reduces firms' desire to invest, and "crowds out" domestic investment.
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What is the present value of $777 in one year if the current rate of interest is 7 percent?
A) $831.39 B) $726.17 C) $457.06 D) $111.00
During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. After the third pie, your total utility:
A. stayed the same. B. increased, but by less than for the first three pies. C. was zero. D. decreased.
In the case of global pollution, a nation that pollutes gets benefit from production but:
a. has to pay for it in terms of dirty air and water. b. never receives any negative consequences. c. cannot control the amount of pollution by private firms. d. will not suffer the full costs of its own pollution and so has little incentive to control it.
Which of the following would be included in the GDP of the United States?
A. Boeing builds a plane in Seattle that is sold to Air Canada. B. Planet Hollywood serves customers in a restaurant in Hong Kong. C. Nestle produces a candy bar in Switzerland that is sold in San Francisco. D. General Motors produces a car in Germany that is sold in Michigan.