The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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If a subsidy was imposed on an industry whose production imposed external benefits on others, then the goods' consumers of the good would be ____ and the result would be a(n) ____ in efficiency
a. better off; increase. b. better off; decrease. c. worse off; increase. d. worse off; decrease.
The saving rate equals saving divided by:
A. income. B. assets. C. wealth. D. liabilities.
If an investor had a $25,000 long-term capital gain on a $100,000 investment from 1984 to 2010, her real rate of return was most likely
A. equal to the expected rate of inflation. B. equal to the nominal rate of inflation. C. zero. D. negative.
Considering the In the News article "Microsoft Guilty of Monopoly Abuse" antitrust laws attempt to
A. Protect producers from too much competition. B. Protect the government from frivolous lawsuits. C. Increase the profitability of monopolies. D. Prevent the abuse of market power.