Higher inflation makes relative prices
a. more variable, making it more likely that resources will be allocated to their best use.
b. more variable, making it less likely that resources will be allocated to their best use.
c. less variable, making it more likely that resources will be allocated to their best use.
d. less variable, making it less likely that resources will be allocated to their best use.
b
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Under a cost plus fixed fee contract the contractor cannot make a loss
a. True b. False
According to the traditional Keynesian approach, if the government increases spending by $5 million and raises current taxes by $5 million at the same time, then
A) real GDP will increase by $5 million. B) real GDP will decrease by $5 million. C) real GDP will decrease by more than $5 million. D) real GDP will remain the same.
Which of the following is an example of a final good or service?
a. Bricks purchased by a company for constructing houses b. Wheat purchased by a bakery c. Steel purchased by a company for manufacturing cars d. A cup of coffee bought at a restaurant e. A used car bought by a person
Treasury Bonds are
a. both a store of value and a medium of exchange. b. a store of value, but not a medium of exchange c. a medium of exchange, but not a store of value. d. neither a store of value nor a medium of exchange.