Assume that seigniorage and the government's primary deficit are both zero
If the real interest rate is less than the growth rate of real GDP, fiscal policy ________, and if the real interest rate is greater than the growth rate of real GDP, fiscal policy ________. A) is sustainable; may be sustainable
B) is unsustainable; is sustainable
C) is sustainable; is unsustainable
D) is unsustainable; may be sustainable
C
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A cartel is likely to last longer if
A) more new firms enter the market. B) the profits of participating members are relatively stable. C) market prices vary more over time. D) there are more firms in the industry.
Why is bad weather sometimes good news for farmers?
A) Bad weather shifts the supply curve of agricultural products leftward, driving up price and total revenue (assuming demand is inelastic). B) Bad weather shifts the supply curve of agricultural products leftward, driving down price, and raising total revenue (assuming demand is elastic). C) Bad weather increases the demand for and price of agricultural products. D) Bad weather increases both the demand for and supply of agricultural products.
Suppose an industry has total sales of $25 million per year. The two largest firms have sales of $6 million each, the third largest firm has sales of $2 million, and the fourth largest firm has sales of $1 million. The four-firm concentration ratio for this industry is
A. 60 percent. B. 36 percent. C. 25 percent. D. 50 percent.
Using Table 6.1, the inflation rate for 1999 would be
A. 2.7% (((168.3-163.9)/163.9)*100 %). B. 3.0% (174-163.9)/(2*163.9)*100%). C. 68.3% (168.3-100). D. 4.4% (168.3-163.9).