Unlimited liability explains why
a. bondholders don't buy stock
b. many proprietors are reluctant to expand their businesses
c. banks are reluctant to lend money to corporations
d. sole proprietors prefer not to incorporate
e. many businesses go bankrupt
B
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Actual federal budgets are not an accurate measure of discretionary fiscal policy because: a. it is difficult to measure government spending accurately
b. people cheat on their income taxes. c. budget deficits increase during expansions even without changes in fiscal policy. d. budget deficits increase during recessions even without changes in fiscal policy. e. earlier administrations may have contributed to current budget deficits.
The consumer basket used calculating the CPI depends on the goods and services selected in the base year. Suppose in 2000 we used 1952 as a base year. It would be less representative of the goods and services we buy in 2000 because the only good included in the CPI would be
a. personal computers b. CDs c. VCRs d. roller blades e. bread
Monetizing the debt has what effect on the economy?
a. slow increase in AS with steady inflation b. rapid increase in AD with an increase in inflation c. rapid increase in AS with a drop in inflation d. decrease in AD with an increase in inflation
Oceania buys $100 of wine from Escudia and Escudia buys $80 of wool from Oceania. Suppose this is the only trade that these countries do. What are the net exports of Oceania and Escudia, in that order?
a. $80 and $100 b. $-20 and $20 c. $20 and -$20 d. None of the above is correct.