Which of the following is an example of the way the financial markets in the United States can encourage technological progress more efficiently than other countries?
A) The level of legal protection for investors in the United States is relatively low.
B) Banks in the United States are more willing to take on risk because the government guarantees each bank cannot lose more than $100,000 on any given loan that defaults.
C) Because the financial market in the United States is so large, the quantity of trading in corporate stocks and bonds makes those investments less liquid.
D) Even when entrepreneurs cannot secure sufficient funding for projects from banks, venture capital firms may be willing to lend money.
D
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If the economy is represented in the graph shown and is currently at point E3, what could be said about the state of the economy?
A. There is higher unemployment than the natural rate.
B. There is lower unemployment than the natural rate.
C. The unemployment rate is just about the natural rate.
D. The unemployment rate is zero.
Politicians and economists who are generally conservative tend to believe that
a. the self-correcting mechanism is slow and unpredictable. b. the short-run Phillips curve is relatively steep. c. the costs of unemployment are high. d. expectations in reaction to policy measures are very slow to change.
How has the pattern of movements in the U.S. price level changed since World War II?
A. The annual rate of inflation has never risen above 3 percent. B. The price level has become more volatile. C. Periods of deflation have largely been eliminated. D. Periods of inflation have largely been eliminated.
The vertical axis for an aggregate demand curve measures
A. real Gross Domestic Product (GDP). B. the interest rate. C. a nation's production level. D. the price level.