The main effect of a decrease in the stock of capital is a(n):
a. rightward shift of the short-run aggregate supply curve.
b. rightward shift of the aggregate demand curve
c. leftward shift of the long-run aggregate supply curve.
d. leftward shift of the aggregate demand curve.
e. increase in the price and output levels.
c
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An asset is said to be riskless if:
A) it can be easily converted into cash. B) its value does not change from day to day. C) its value is more likely to fall in future. D) it offers a positive rate of interest.
MSB equals
A) MC + the marginal external cost. B) MC + the marginal external benefit. C) MB + the marginal external cost. D) MB + the marginal external benefit. E) MB + MC.
Answer the following statements true (T) or false (F)
1. The biggest disadvantage of a sole proprietorship is the lack of distinction between the business and the owner. 2. In a partnership, each partner’s liability is limited to his or her contribution to the partnership. 3. The board of directors has unlimited financial liability for the debts of the corporation. 4. A corporation can raise money by selling stock or bonds.
The global financial crisis of 2007-2009 not only led to a worldwide recession, but also a ________ in the European nations that use the euro currency
A) currency devaluation B) budget surplus C) sovereign debt crisis D) tax cut