Everything else held constant, an increase in government spending ________ aggregate ________
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
A
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When net capital flows are negative,
A) capital inflows are less than capital outflows. B) net foreign investment is negative. C) capital outflows are less than capital inflows. D) A and B are both correct.
Which of the following is false? a. We do not have information on nonmarket transactions output that is reliable enough to include it in the GDP. b. The most important nonmarket transaction omitted from GDP are services provided directly in the home. c. The value that individuals place on leisure is omitted in calculating GDP
d. All goods and services exchanged in the current period are included in this year's GDP.
The "per se" standard makes antitrust action less likely than would the "rule of reason"
Indicate whether the statement is true or false
You originally required a risk premium of 6 percent in addition to the rate of return on safe assets before you would purchase shares of Techno Company stock. If you and other investors reduce the risk premium you require to 4 percent, the price of Techno Company stock will:
A. equal the old risk premium plus the new risk premium. B. equal the new risk premium plus the rate of return on safe assets. C. increase. D. decrease.