The expected rate of return from an investment is:
A. Only the rate that compensates for time preference
B. Only the rate that compensates for risk
C. The rate that compensates for time preference plus the rate that compensates for risk
D. The rate that compensates for time preference minus the rate that compensates for risk
C. The rate that compensates for time preference plus the rate that compensates for risk
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
In principle, can a monopolist hold its monopoly power in the long run? Explain
What will be an ideal response?
Of the three levels of government in the United States,
a. only the federal government provides public goods b. only the federal government has the power to tax c. local governments are primarily responsible for primary and secondary education d. the federal government is primarily responsible for higher education e. state governments are primarily responsible for economic stability
Which statement is false?
A. The 1990s was one of the most prosperous decades in the United States' history. B. The United States' economy reached its tenth year of steady expansion in the spring of 2001. C. Compared to other decades, the 1990s was a decade was unique in that it had strong economic growth with no recessions. D. At the end of the 1990s, the government was running budget surpluses.