Monetary restraint and fiscal stimulus will
A) both lower the real rate of interest.
B) both raise the real rate of interest.
C) have differing effects on the real rate of interest.
D) Both raise the level of output.
B
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A contour map illustrates which of the following?
A. The cause–effect relationship between two variables B. The cause–effect relationship between three variables C. The way that three variables are correlated D. The way that one variable affects another, which in turn affects a third variable E. The way that two variables are correlated and in turn cause changes in a third variable
The problem of moral hazard arises because _____
a. individuals receive insurance through their employer, who has different incentives b. individuals with insurance have no incentive to avoid insured expenditures c. some individuals have religious objections to purchasing insurance d. some individuals are immoral
Favorable supply shocks should produce rapid economic growth with falling inflation
a. True b. False Indicate whether the statement is true or false
Other things equal, patents:
A. decrease the expected rate of return on an R&D expenditure. B. increase the expected rate of return on an R&D expenditure. C. increase the interest-rate cost of funds used to finance an R&D expenditure. D. decrease the interest-rate cost of funds used to finance an R&D expenditure.