The marginal productivity of capital increases with greater capital inflows into the borrowing country.
Answer the following statement true (T) or false (F)
False
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
In a market with an external cost, government action
A) cannot decrease the amount of the deadweight loss from the external cost. B) can sometimes help to achieve an efficient outcome. C) cannot alter firms' cost curves. D) Both answers A and C are correct. E) Both answers B and C are correct.
If you knew that an investment was going to pay you $46,370 in 5 years, and you knew that the annual interest rate over that time would be 3 percent, you could calculate the present value to be:
A. $41,600. B. $39,999. C. $37,000. D. $41,998.
If a price floor of $23 were placed in the market in the graph shown:
A. all producers are better off. B. all consumers are better off. C. some surplus is transferred from producer to consumer. D. some surplus is transferred from consumer to producer.