(Consider This) When making a capital stock and reservoir analogy, the:
A. outflow below the dam is gross investment.
B. inflow from the river is the stock of capital.
C. level of water in the reservoir is the stock of capital.
D. level of water in the reservoir is net investment.
C. level of water in the reservoir is the stock of capital.
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Discretionary fiscal policy is a fiscal policy action, such as
A) a decrease in tax receipts, initiated by the state of the economy. B) an increase in payments to the unemployed, initiated by the state of the economy. C) an interest rate cut, initiated by an act of Congress. D) an increase in the quantity of money. E) a tax cut, initiated by an act of Congress.
Many developing countries make the government budget one of the primary tools of long-run industrial development, with the government owning and operating industries such as steel mills, airlines, and phone companies
Indicate whether the statement is true or false
Which statement best describes the immediate post-slavery experience for ex-slaves?
a. They were able to engage fully in the economic, social and political activities in their towns. b. Freedmen took advantage of the educational opportunities available to them and had education rates equal to those of whites. c. Most freedmen immediately moved north. d. Their life expectancies increased dramatically. e. Their income increased relative to the income of whites.
Consumers spend a lot more time searching for good bargains during recessions because:
A. goods are more expensive during recessions and hence expected benefits of a search are higher and in recessions, many individuals are out of work, which lowers their opportunity cost of time. B. in recessions, many individuals are out of work, which lowers their opportunity cost of time. C. goods are more expensive during recessions and hence expected benefits of a search are higher. D. None of the statements is correct.