Referring to Table 12.2, if the nominal interest rate is 8.5 percent and there is no inflation, which investments will be undertaken?
A) D, E B) E C) C, E D) none of the above
B
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Countries with high real GDP tend to have ________ infant mortality rates and ________ literacy rates than countries with low real GDP.
A. lower; higher B. higher; higher C. higher; lower D. lower; lower
The largest proportion of the public debt is held by:
A) U.S. government agencies B) foreign individuals and institutions. C) the Federal Reserve System. D) the U.S. Treasury.
Under a tradable pollution permits system (cap and trade), government _____________ the amount of pollution, ___________________ what the price to pollute will be.
A. knows; and polluters immediately know B. doesn't know; and polluters don't immediately know C. knows; but polluters don't immediately know D. doesn't know; but polluters immediately know
An example of government investment in physical capital to increase business productivity is:
A. roadways. B. bridges. C. sewer systems. D. All of these are examples of ways governments can increase productivity.