Why is deflation such a problem for consumption and investment?
A. It increases the rate of both.
B. It causes firms and households to spend more.
C. It slows both.
D. It slows investment while simultaneously increases consumption.
Answer: C
Economics
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The capture theory of regulation predicts that regulations bring ________ to producers and impose ________ on any individual consumer
A) small benefits; small costs B) small benefits; large costs C) large benefits; small costs D) large benefits; large costs E) large benefits; no costs
Economics
Assume that for the third quarter of 2012, actual real GDP was $176.1 billion and potential real GDP was $163.9 billion. According to Okun's law, the cyclical unemployment rate during the third quarter of 2012 was
A) -6.1%. B) -3.7%. C) 3.5%. D) 6.1%.
Economics