If expected inflation is 12 percent and the publicly regulated electric utility company is legally limited to a 10 percent rate of return, then we should expect
A. increased investment by the utility.
B. expansion of electric power generating capacity.
C. future power shortages.
D. excess investment by the electric utility.
Answer: C
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The expected effects of fiscal contraction are
a. higher real interest rates. b. exchange rate depreciation. c. increased trade deficit. d. All of the above are correct.
After the First World War, Germany experienced an economic condition that can be best described as:
A. unanticipated inflation. B. cost-push inflation. C. hyperinflation. D. anticipated inflation.
The Employment Act of 1946 reflects which one of the following functions of government?
A) providing a legal system B) improving economy-wide stabilization C) correcting externalities D) providing public goods
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30