Equal increases in government purchases and in net taxes have equal but opposite effects on the level of real GDP demanded
a. True
b. False
Indicate whether the statement is true or false
False
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How does hedging affect the flow of funds in the financial system?
A) It reduces it since it is a sign that investors do not like risk. B) It reduces it because it increases risk by encouraging speculation. C) It increases it because it reduces risk thus encouraging more people to make financial investments. D) It increases it by encouraging more speculation.
Which of the following is NOT a result of the ability of investors to hedge?
A) increased access to funds by firms and households B) investors are more willing to invest C) increased risk aversion D) slower economic growth
A lottery game pays $500 with .001 probability and $0 otherwise. The variance of the payout is
A) 15.8. B) 249.50. C) 249.75. D) 499.
Over the last several years and until recently, the United States has had lower unemployment rates than most European countries
a. True b. False Indicate whether the statement is true or false