Investment spending tends to be closely related to the current pace of economic growth
Indicate whether the statement is true or false
TRUE
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Off-balance-sheet activities
A) generate fee income with no increase in risk. B) increase bank risk but do not increase income. C) generate fee income but increase a bank's risk. D) generate fee income and reduce risk.
In a tradeable effluent permit market,
a. effluent allowances may be used, but not effluent credits b. high-cost abaters will buy permits as long as the price is lower than their MAC c. a permit price should be established where all polluters’ MACs are equal d. all of the above e. (b) and (c) only
Balancing the government’s budget each year would
a) allow tax rates to remain constant from year to year b) reduce uncertainty over future tax rates and net income c) exacerbate recessions d) stabilize short run GDP e) generate smaller economic distortions than a policy of countercyclical deficits and surpluses
One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is
A. environmental quality is ignored. B. quality has remained steady. C. things produced by people under 18 are not counted. D. people substitute between goods.