When a country's inflation rate varies substantially from year-to-year and is therefore difficult to predict, this will
a. reduce the volume of trade and the gains derived from it.
b. reduce the risk accompanying investment.
c. encourage entrepreneurs to innovate and develop better products.
d. increase the level of foreign investment in the country.
A
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The Social Security tax is an example of an automatic stabilizer
Indicate whether the statement is true or false
Labor's Magna Carta was the Wagner Act
Indicate whether the statement is true or false
Combining various goods and services into a convenient grouping is called
a. conglomeration. b. blending. c. congregation. d. agglomeration. e. aggregation.
Suppose paper pulp mills are permitted to emit harmful pollutants, free of charge, into the air. How will the price and output of paper in a competitive market compare with their values under conditions of ideal economic efficiency?
a. The price will be too high, and the output will be too large. b. The price will be too low, and the output will be too large. c. The price will be too low, and the output will be too small. d. The price will be too high, and the output will be too small.