A parent company rewarding managers on profit centers can simply
a. Subtract division costs from the division revenue and reward the manager on the difference
b. Add the division costs to the division revenue and reward the manager on the sum
c. Reward the manager on the revenue of the division
d. Reward the manager on the costs of the division
a
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According to the Romer model, tax incentives to support research and development will lead to ________
A) higher tax rates in the future B) an increase in the general level of prices C) a decrease in the general level of prices D) increased per capita income
Luke purchases a $50,000 face value one-year Treasury bill for $46,296.30, and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 4%
If Luke decides to sell his Treasury bill to another investor the day after he purchased it, he will A) receive a capital gain of $1,780.62. B) receive a capital gain of $2,000.00. C) suffer a capital loss of $1,923.08. D) suffer a capital loss of $1,851.85.
The management of expectations has increased in importance in policymaking in recent decades with the rise of ________
A) traditional Keynesian theory B) institutionalist theory C) torsion theory D) new Keynesian theory
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.