Rising government expenditure, through its effect on the real interest rate, ________ v* and thus ________ net investment
A) raises, stimulates
B) raises, depresses
C) lowers, stimulates
D) lowers, depresses
D
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A price restriction that tells suppliers the minimum price they can sell their goods for is also known as
A) a price ceiling. B) a quota. C) a price floor. D) deadweight loss.
If the estimates of the coefficients of interest change substantially across specifications,
A) then this can be expected from sample variation. B) then you should change the scale of the variables to make the changes appear to be smaller. C) then this often provides evidence that the original specification had omitted variable bias. D) then choose the specification for which your coefficient of interest is most significant.
A pollution tax penalizes inefficient firms
a. True b. False Indicate whether the statement is true or false
Comparative advantage is the rule that ordinarily prevents a nation from independently producing all of the goods it requires
a. True b. False Indicate whether the statement is true or false