Which of the following is true of a beneficial supply shock?
What will be an ideal response?
It can lead to a temporarily lower price level.
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When a direct expenditure offset occurs with the implementation of an expansionary fiscal policy,
A. the stimulative effect will be more than expected. B. the fiscal policy will not be discretionary. C. the time lags associated with the implementation of fiscal policy will shorten. D. the stimulative effect will be less than expected.
Describe (verbally) how to calculate a one-time return on an investment. On an annual return.
What will be an ideal response?
Refer to Figure 19-7. At what level should the Indian government peg its currency to the dollar to make U.S. imports cheaper in India?
A) less than $.02/rupee B) equal to $.02/rupee C) greater than $.02/rupee D) $1/rupee
Why does the market not provide national defence?
a) It is impossible to prevent any single person from enjoying the benefit of national defence. b) The fixed cost of national defence is too high. c) The necessary resources for national defence are not available in the private sector. d) Private sectors are not willing to pay for it.