The Keynesian view stresses that:
a. demand creates its own demand.
b. there is direct relationship between consumer spending and disposable income.
c. when aggregate expenditures (demand) can be forever less than full-employment output therefore prolonged unemployment will persist.
d. all of these are true.
d
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According to the U.S. Treasury,
A) creditors do not have to accept cash in payment of debts. B) U.S. dollars must be accepted as payment for any good or service sold in the United States. C) firms do not have to accept cash as payment for goods and services. D) the government will not accept cash in payment of taxes.
You read a story in the newspaper announcing the proposed merger of Dell Computer and Gateway. The merger is expected to greatly increase Gateway's profitability. If you decide to invest in Gateway stock, you can expect to earn
A) above average returns since you will share in the higher profits. B) above average returns since your stock price will definitely appreciate as higher profits are earned. C) below average returns since computer makers have low profit rates. D) a normal return since stock prices adjust to reflect expected changes in profitability almost immediately.
Which of the following would be included in a person's life-cycle wealth?
a. savings account b. refrigerator c. stock in a corporation d. government savings bonds e. income
A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?
a. both the first and the second b. the first but not the second c. the second but not the first d. neither the first nor the second