The major economic cost of growth is:
A. consumption sacrificed for capital formation.
B. higher interest rates.
C. higher inflation rates.
D. investment in stocks and bonds.
Answer: A
You might also like to view...
In the long run, a monopolistically competitive firm will produce too little output to minimize average cost. Therefore, it will have
a. positive economic profit b. negative economic profit c. excess profit d. X-inefficiency e. excess capacity
In response to the global recession of 2008 and 2009, governments around the world
A. Reduced public works spending. B. Expanded public works spending and income transfer programs. C. Expanded income transfer programs but reduced public spending programs. D. Reduced income transfer programs.
The term "open market operations" refers to the:
A. loan-making activities of commercial banks. B. effect of expansionary monetary policy on interest rates. C. operation of competitive markets in the banking industry as the result of deregulation. D. buying and selling of government securities by the Federal Reserve.
Compared to a sampling of other developed nations, the U.S. income distribution is more unequal than many others. What accounts for this?
A) The lowest-income families in the United States earn much less than the lowest-income households in other nations. B) Marginal income tax rates are much higher in the United States than in any other nation. C) The highest-income families in the United States earn much more than the highest-income households in other nations. D) Other nations manipulate their data to look better.