The government should not attempt to balance the budget if
a. the economy is in a recessionary gap.
b. actual GDP is below full-employment GDP.
c. unemployment is rising.
d. All of the above are correct.
d
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Foreign exchange market intervention is most effective when:
a. each country's political leaders agree to cooperate fully with the process. b. leading economists in each country believe that intervention is needed. c. permanent differences between the free market exchange rate and the fixed exchange rate are expected. d. temporary differences between the free market exchange rate and the fixed exchange rate are expected. e. all the countries restrict the international movement of goods and services.
Assume that the utility function of an individual is represented as U = ?W - 0.001W; where W (his present wealth) = $250,000 . He considers investing in a gamble which would double his wealth if he wins but still leave him with $250,000 if he loses. Given that his probability of winning is 0.6, calculate his expected wealth from the bet
a. $300,000 b. $400,000 c. $250,000 d. $100,000
Which of the following statements is correct?
a. Theory and hypothesis are interchangeable terms for the same thing. b. A hypothesis may result from a tested and confirmed theory. c. A theory may result from a tested and confirmed hypothesis. d. A hypothesis is a theory whose formulation relies on mathematics.
What is the economic concept that suggests that using money for one children's program comes at the price of the lost ability to use that money on another children's program that might be more effective?
A. Supply and demand B. Fixed cost C. Opportunity cost D. Equilibrium