An investment is profitable as long as its internal rate of return is equal to the rate of interest
Indicate whether the statement is true or false
False. Such an investment has a profit of zero. The investment is profitable if the internal rate of return exceeds the interest rate.
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Although ________ initially proposes and ultimately approves the budget, the discussion and amendment process rests with ________
A) the U.S. Treasury; Congress B) Congress; the President C) Congress; the Federal Reserve D) the Senate; the President E) the President; Congress
Distorting taxes can invalidate Ricardian equivalence because
A) they confuse consumers about the need for government to repay its debt. B) alternative ways of collecting the same tax revenue produce different amounts of lost welfare. C) they are inferior to lump-sum taxes. D) they are more popular, politically, than lump-sum taxes.
The additional revenue a firm obtains when it hires an additional worker (holding other inputs constant) is the
A) marginal revenue product (MRP) of labor. B) total factor cost (TFC) per worker. C) general rule for hiring. D) marginal physical product (MPP) of labor.
Along the short-run supply curve (SRAS), a decrease in the aggregate demand curve will decrease: a. both the price level and real GDP
b. real GDP without raising the price level. c. the price level without affecting real GDP. d. the price level but reduce real GDP.