The nominal GDP in Liplandis is currently $3,456 billion. If net foreign factor income increases by $400 billion, the nominal GDP will ________.
A. not change
B. increase by $400 billion
C. fall, but by less than $400 billion
D. fall by $400 billion
Answer: B
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The ________ of a coupon bond and the yield to maturity are inversely related
A) price B) par value C) maturity date D) term
Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
Economists are sharply divided over how to best fight the Great Recession. The majority of economists favor the "Stimulus Solution," which involves
A. Relying on the invisible hand of the market to set things right B. Government actions to increase the total demand for output in the economy C. Making prices become more flexible so that equilibrium can be attained once more D. Stimulus from abroad through international trade and treaties
Which of the following will limit the money creation process to an amount less than the potential amount?
What will be an ideal response?