Which of the following is an example of built-in stability? As real GDP decreases,
A. income tax revenues increase and transfer payments decrease.
B. income tax revenues and transfer payments both decrease.
C. income tax revenues and transfer payments both increase.
D. income tax revenues decrease and transfer payments increase.
Answer: D
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The relocation of service industry functions to another country is called what?
What will be an ideal response?
Regarding demand and supply, which of the following statements is NOT correct?
a. Demand and supply simultaneously determine equilibrium market price b. Demand expresses intentions, but supply does not c. Demand is a potential concept distinguished from the transactional even of "units sold" d. Supply is more like scenario planning for operations than for actual production e. all of the above statements are correct
The problems of asymmetric information exchange arise ultimately because
a. one party to the exchange possesses different information than another b. one party has more information than another c. one party knows nothing d. one party cannot independently verify the information of another e. information is scarce
State the case for and the case against currency bailouts.
What will be an ideal response?