Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a negative demand shock such as the financial crisis of 2007-2009 would result in a movement from point ________ to point ________
A) A; B
B) B; A
C) A; C
D) A; D
D
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The United States has a much higher national debt as a percentage of GDP compared to other industrialized nations
a. True b. False Indicate whether the statement is true or false
What limits a bank's ability to extend loans?
Consider a portfolio with three stocks, each with the same value. The three stocks have standard deviations of 20%, 40%, and 90%. The standard deviation of this portfolio is
a. no greater than 50%. b. less than 20%. c. exactly 40%. d. more than 90%.
Which of the following statements is false?
A) Government can remove individuals from a prisoner's dilemma setting and make them better off. B) In a prisoner's dilemma setting, it is impossible for the government to define and enforce property rights that the individuals involved in the setting want to have defined and enforced. C) As long as government charges each individual in a prisoner's dilemma setting a tax that is less than the gain received by being removed from the setting, then government has made the individuals better off. D) Depending upon the amount of the tax charged to each individual in a prisoner's dilemma setting, the government can make both persons better off, both persons worse off, or one person better off and the other person worse off.