Discretionary fiscal policy in the form of an increase in government spending or a decrease in taxes can be used to close an expansionary gap
Indicate whether the statement is true or false
false
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Explain the difference between financing investment with a business loan versus with venture capital. What are the pros and cons of each?
What will be an ideal response?
As a result of a decline in the expected rate of return on investment, GDP would not have to fall if the government __________ taxes or __________ government spending
A) increased; increased B) increased; decreased C) decreased; increased D) decreased; decreased
Which of the following is NOT true of the term premium?
A) It is zero under the expectations theory. B) It is infinite under the segmented markets theory. C) It increases as a bond's maturity increases. D) It is zero for thirty-year bonds.
Which of the following prices could represent Sally's willingness to pay for a pair of shoes if she bought them for $45?
A. $15.00 B. $25.00 C. $44.99 D. $55.00