Whenever government spending is a substitute for private spending
A) interest rates will rise.
B) the Ricardian equivalence theorem holds.
C) the effects of expansionary fiscal policy are dampened.
D) there is a direct multiplier effect.
C
Economics
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Excess volatility refers to
A) the unwillingness of financial analysts to consistently recommend the same stocks. B) the greater volatility of futures prices compared to the volatility of prices of the underlying assets. C) the tendency for stocks with high rates of returns also to have quite variable returns. D) the larger movements in market prices of stock than in their fundamental values.
Economics
Individuals who are more risk averse
a. buy less insurance b. buy more insurance c. are not more or less inclined to buy insurance d. are philosophically opposed to insurance
Economics