In which of the following ways can a corporation raise new funds for investment? I. Issuing new shares of stock II. Having existing stock resold between two owners

Which of the following would have the biggest payoff?

A) increasing the Okun Gap B) restoring real GDP growth to its 1960s growth rate C) making the Okun Gap equal the Lucas Wedge D) eliminating the Okun Gap E) increasing the Lucas Wedge

An increase in the consumption of a good resulting from a reduction in price that makes the good cheaper in relation to other goods is called the:

a. substitution effect. b. income effect. c. real balance effect. d. inelasticity effect.