In the classical model, a 20 percent increase in the money growth rate leads to:
a. a 20 percent inflation rate.
b. a 23 percent increase in the inflation rate.
c. no change in the inflation rate.
d. a 20 percent increase in the inflation rate.
D
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If a Canadian firm opens a production facility in the United States, the profits from this production facility received by the Canadian owners of the firm in exchange for the factors of production they supply will be included in the
A) gross domestic product of Canada. B) gross national product of the United States. C) gross national product of Canada. D) exports from Canada and imports to the United States.
At any given time, about 95% of the population in the United States lacks health insurance.
A. True B. False C. Uncertain
A central focus of prospect theory is:
A. how people deal with "bads," as well as how they deal with "goods." B. optimizing precious metal discovery and extraction. C. maximizing returns from investment portfolios. D. how people make rational decisions despite having incomplete information.
The capture hypothesis suggests that
A. the firms being regulated will unduly influence the regulators. B. marginal cost regulation is superior to average cost regulation. C. regulation will lead to over-entry and eventual losses for firms in the industry. D. the well-focused interests of consumers will lead to the over-regulation of most industries.