The recession of 1982 was largely caused
a. on purpose by the Federal Reserve's decision to raise interest rates to combat inflation.
b. on purpose by the Federal Reserve's decision to cut interest rates to combat inflation.
c. by accident as a result of the Reagan era tax cuts.
d. by dramatically rising oil prices.
e. on purpose by the Reagan Administration's decision to raise interest rates to combat inflation.
A
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Changes in demand will often be met with changes in output rather than changes in prices because of formal and informal contracts
Indicate whether the statement is true or false
A one-year discount bond with a par value of $5000 sold today, at issuance, for $4750 has a yield to maturity of
A) 5.00%. B) 5.26%. C) 2.50%. D) 9.75%.
Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then
a. output in country A increases by more than in country B. b. output in country A increases by the same amount as in country B. c. output in country A increases by less than in country B. d. None of the above is necessarily correct.
The growth model in which capital accumulation plays the key role is called the:
A. new Classical growth model. B. Classical growth model. C. Keynesian model. D. new growth model.