What is the difference between economic and financial investments?
A. Financial investments are sensitive to interest rates; economic investments are not.
B. Economic investments add to the capital stock of an economy; financial investments do
not.
C. Economic investments are expressed in real (inflation-adjusted) terms; financial
investments are expressed in nominal terms.
D. Financial investments include all purchases undertaken with the expectation of financial
gain; economic investments include only purchases of new capital goods.
D. Financial investments include all purchases undertaken with the expectation of financial
gain; economic investments include only purchases of new capital goods
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One common effect of rent ceilings in big cities is
A) that landlords build more apartments. B) that landlords charge "key money," high payments charged to new tenants for new locks and keys. C) to equalize the quantity of apartments demanded and the quantity supplied in neighborhoods. D) to reduce the search activity by those seeking shelter.
Describe the Cournot model
What will be an ideal response?
Which of the following is not included in taxable income?
a. wages b. salaries c. alimony received d. interest on municipal bonds
An effective rent control will
A) lead to a surplus of housing units. B) keep rents below the competitive market level. C) keep rents above the competitive market level. D) be set at the price where quantity supplied equals quantity demanded.