Suppose an economy has a balanced federal budget, and a favorable supply shock hits the economy. Tax revenues will ________ and expenditures on transfer payments will ________, resulting in a budget ________
A) fall; fall; deficit B) increase; fall; surplus
C) fall; increase; deficit D) increase; increase; surplus
B
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What is the dominant strategy for Bob? Donna? Which strategy should each player choose to maximize the potential gain? What do you think the outcome of this game will be? Carefully explain your answers
What will be an ideal response?
Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. For which bond is the yield and the coupon rate the same?
A. Bond A B. Bond B C. Bond C D. Bond D E. Bond E
In the long run in a monopolistically competitive market, a firm will, in theory,
A) earn economic profits. B) suffer losses. C) break even. D) earn zero accounting profits.
Which of the following are problems that may limit economic growth in developing countries?
a. geography b. health c. governance d. all of the above.