Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
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Increases in investment exceed increases in output because of the multiplier effect
Indicate whether the statement is true or false
An important feature of money market mutual fund shares is
A) deposit insurance. B) the ability to write checks against shareholdings. C) the ability to borrow against shareholdings. D) claims on shares of corporate stock.
The major difference between stocks and bonds is
A. a stock is ownership in the corporation and a bond is a debt instrument of the corporation. B. a stock is a debt instrument of the corporation and a bond is ownership in the corporation. C. a stock has value in the marketplace and a bond does not. D. a bond has value in the marketplace and a stock does not.
Frederick Taylor
a. studied the movements of workers as they performed job tasks. b. advocated the use of incentives for superior performance. c. carried on experiments to determine the optimum size and weight of tools. d. developed principles pertaining to the correct routing of work and accurate scheduling of production orders. e. All of the above.