An increase in government spending might be an example of a ________ policy for the purpose of ________
A) monetary; lowering unemployment
B) monetary; reducing inflation
C) monetary; increasing saving
D) fiscal; reducing inflation
E) fiscal; lowering unemployment
E
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All of the following are examples of capital except:
a. the robot used to help produce your car. b. a computer used by your professor to write this exam. c. the factory that produces the costume jewelry you buy. d. the inventory of unsold goods at your local hardware store. e. an uncut diamond that you discover in your backyard.
In economics, the term marginal refers to:
a. the change or difference from a current situation. b. man-made resources as opposed to natural resources. c. the satisfaction a consumer receives from a good. d. holding everything else constant in the analysis.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50The variance in the returns of project B is:
A. 225. B. 1,600. C. 0. D. 900.
?An increase in government purchases must always be accompanied by an increase in autonomous net taxes to boost aggregate demand.
a. True
b. False
Indicate whether the statement is true or false