Government gives subsidies to encourage production of products with beneficial externalities
a. True
b. False
Indicate whether the statement is true or false
True
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A barter system of payment is
A) different from a money system of payment because money does not require a double coincidence of wants. B) similar to a money system of payment because both require a double coincidence of wants. C) different from a money system of payment because the barter system is a better unit of account. D) similar to a money system of payment because both use one asset as a unit of account. E) similar to a money system of payment because both are used as stores of value and units of account.
Many researchers blame the severity and length of the Great Depression on the breadth and depth of government interference in private market affairs
Indicate whether the statement is true or false
The income effect occurs when an individual switches to another similar good when the price of the preferred good increases
a. True b. False Indicate whether the statement is true or false
In a Keynesian model, what are the short-run effects on output, the real interest rate, and the real exchange rate, for both the domestic economy and a foreign economy, of a decline in investment?
What will be an ideal response?