An externality refers to economic events outside a market
Indicate whether the statement is true or false
FALSE
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The study of economic mobility discussed in the text pinpoints five factors that are correlated with economic mobility. What are those five factors and how do they affect economic mobility?
What will be an ideal response?
If the nominal interest rate is 6 percent and the rate of inflation is 10 percent, then the real interest rate is
a. -16 percent. b. -4 percent. c. 4 percent. d. 16 percent.
Potential GDP was estimated to grow at a rate of 3.2% from 1949-2017 in the United States. Actual GDP in the U.S
A) always grows at a slower rate than potential GDP. B) always grows at a faster rate than potential GDP. C) always grows at the same rate as potential GDP. D) is the same as potential GDP if all firms in the economy were working at capacity.
Which of the following statements is most correct?
A. There is no evidence that high real interest rates are followed by lower levels of growth. B. High real interest rates cause recessions. C. There is evidence that high real interest rates are followed by lower levels of growth. D. Central bankers raise real interest rates to cause recessions.