Within the framework of the AD/AS model, if consumers and investors become more pessimistic about the future direction of the economy, this will lead to
a. an increase in aggregate demand.
b. a decrease in aggregate demand.
c. an increase in long-run aggregate supply (LRAS shifts to the right).
d. a reduction in the natural rate of unemployment.
B
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The Great Depression is still the subject of controversy, including the question(s) of
(a) what caused the initial downturn. (b) why the economy contracted for so long (1929 to 1932) and why it contracted so much (real GNP fell about 30%). (c) whether government policy helped or hindered the recovery attempt. (d) all of the above.
Venture capital increases the pace of innovation.
Answer the following statement true (T) or false (F)
The courts in some states have declared the financing of public schools by local property taxes unconstitutional because
A. housing should never be the basis for taxation of any kind. B. taxes on real estate generate too much tax revenue. C. disparity in property values means some communities have more in tax revenues to spend on education than do communities containing less valuable property. D. the funds for public education should come from federal revenues, not from local property taxes.
Assume that the interest rate in a foreign country is 7% and that the foreign currency is expected to depreciate by 3% during the year. For each dollar that a U.S. resident invests in foreign bonds, he/she can expect to get back an approximate total of
A) $.93. B) $.96. C) $1.04. D) $1.07. E) $1.10.