What fiscal policy actions did the U.S. government take in 2008 and 2009?
What will be an ideal response?
In 2008, the U.S. Congress passed an economic stimulus measure to increase government spending. The $150 billion in spending came in the form of tax breaks for businesses and payments to individuals. This initial stimulus did not have much effect because households saved a substantial portion of their government payments. In 2009 a significantly larger spending stimulus measure, called the American Recovery and Reinvestment Act of 2009 was passed. This $787 billion measure was used for tax rebates for low- and middle-income taxpayers plus expenditures on infrastructure, health care, and education. These expenditures were in addition to $700 billion spent to aid financial institutions.
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Provide an example of each type of externality that is different from the ones described above
What will be an ideal response?
The fee charged by a typical hedge fund are sometimes called:
A) 12b-1 fees B) hedging premiums C) loads D) carried interest
Which of the following is true?
A. In an infinitely repeated game, collusion is always a Nash equilibrium. B. In a finitely repeated game with a certain end period, collusion is unlikely because effective punishments cannot be used during any time period. C. All of the statements associated with this question are correct. D. None of the answers is correct.
The best explanation for the surge in demand for bottled water is a change in
a. income b. tastes c. expectations about future prices d. the prices of related goods e. population