Crowding out occurs because lower interest rates discourage saving and make it harder to borrow
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Pollutants. Suppose transactions costs preclude the possibility of private bargaining between the chemical plant and the farm. Which liability rule will not result in an efficient outcome?
A chemical plant's production adds pollutants to a stream which irrigates a farm's crops. The pollutants damage the farm's crops, increasing the firm's costs by $800 per month. The crop damage may be eliminated in two ways: the chemical plant can install a new filtering system costing $300 per month, or the farm can install a new irrigation system costing $600 per month. a. The chemical plant bears all liability for the crop damage. b. The farm bears all of the costs of the crop damage. c. The chemical plant bears 50% of the liability, while the farm bears the other 50% of the crop damages. d. The Coase Theorem guarantees that any assignment of liability will result in an efficient outcome.
The interest payment on a bond is called
A) the coupon payment. B) the face value. C) principal. D) the interest rate.
Which of the following labor markets is more likely to be competitive?
A) Receptionists B) Singers C) Soccer players D) Sculptors
Centrally planned economies use free-market systems for their production planning.
Answer the following statement true (T) or false (F)