In the absence of technological progress, a decrease in the saving rate will cause which of the following?
A) decrease temporarily the growth of output per worker
B) decrease the steady state growth of output per worker
C) increase temporarily the growth of output per worker
D) increase the steady state growth of output per worker
E) have an ambiguous effect on the growth of output per worker
A
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All of the following can cause technological progress EXCEPT
A) population decreases. B) free trade. C) education. D) research and development.
Which phase of the business cycle would be most closely associated with an economic contraction?
A. Recovery B. Recession C. Peak D. Trough
The introduction of the practice of securitization allowed:
A. the government to promote a sense of security in the banking industry. B. borrowers to feel better about taking out subprime loans. C. banks to more safely leverage their investments. D. banks to more safely assume subprime mortgage loans.
Regulators usually encourage natural monopolists to engage in
A) marginal cost pricing. B) average cost pricing. C) marginal cost pricing, with subsidies from the government offsetting the losses. D) inefficient pricing.