The principle of compound interest insures that
A) a small difference in the per capita GDP between countries in one year will grow to a large difference in the long run.
B) a small difference in the per capita GDP growth rate between countries in one year will grow to a large difference in the long run.
C) U.S. interests are compounded by the interests of Great Britain and Germany.
D) U.S. interests are compounded by the interests of all other countries.
A
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Indicate whether the statement is true or false
When a firm is experiencing diminishing marginal returns, marginal cost is
a. rising b. falling c. constant d. rising at first, then falling e. zero
Advocates of the crowding-out effect maintain that the large budget deficits during the recession of 2008-2009
a. stimulated output and employment, leading to a quicker recovery. b. will lead to a slower recovery than would have been the case if government borrowing had been more restrained. c. led to lower interest rates, stimulating private investment and consumption. d. will lead to lower future taxes and more private spending as the economy recovers.
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