Everything else held constant, if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent, then the expected return of holding RST stock ________ relative to XYZ stock and

Expansion in the size of government relative to the market sector will eventually retard economic growth because

a. larger governments will be more involved in activities for which they are ill-suited. b. the higher taxes to finance a bigger government will lead to larger and larger deadweight losses from taxation. c. the incentive to engage in innovative activities and respond to change is weaker in government than in the market sector. d. all of the above are correct.

A recession is defined as at least ________ consecutive quarters of decline in real GDP.

A. two B. three C. four D. five