The IS curve would unambiguously shift up and to the right if there were
A) an increase in both government purchases and corporate taxes.
B) an increase in both government purchases and the expected future marginal product of capital.
C) an increase in the expected future marginal product of capital and a decrease in expected future output.
D) a decrease in both corporate taxes and the expected future marginal product of capital.
B
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Life insurance companies have increased their purchases of corporate stock in recent years in an effort to
A) reduce risk. B) increase asset returns. C) increase liquidity. D) reduce taxes.
Increasing productivity per person:
A. is highly desirable, as it leads to economic growth. B. is unavoidable, and macroeconomists work to prevent it. C. can harm an economy if misallocated. D. is highly undesirable, as it leads to increases in GDP per capita.
The utility function with respect to wealth is negatively sloped for a risk averse person
Indicate whether the statement is true or false
Adverse possession, eminent domain, & escheat are all examples of ___________ alienation
Fill in the blank(s) with the appropriate word(s).