An advantage of automatic stabilizers is that this type of fiscal policy
A. requires precise knowledge of full-employment real GDP.
B. can be influenced by special interest groups when their concerns are valid.
C. is not subject to lag time problems.
D. accelerates the direction in which the economy is moving at the time.
Answer: C
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Why do people and firms in the United States supply dollars to the foreign exchange market?
What will be an ideal response?
The portion of a government's indebtedness owed to foreigners is
A. external debt. B. internal debt. C. not recoverable. D. net debt.
The Condorcet paradox implies that the order in which items are voted on under majority rule is unimportant
a. True b. False Indicate whether the statement is true or false
Wally owns a dog whose barking annoys Wally's neighbor, Corrine. Suppose that the benefit of owning the dog is worth $700 to Wally and that Corrine bears a cost of $500 from the barking. Assuming Wally has the legal right to keep the dog, a possible private solution to this problem is that
a. Wally pays Corrine $600 for her inconvenience. b. Corrine pays Wally $400 to give the dog to his parents who live on an isolated farm. c. Corrine pays Wally $550 to give the dog to his parents who live on an isolated farm. d. The current situation is efficient.