An appropriate Keynesian response to an inflationary gap is to:
a. decrease net taxes

In determining the optimal capital budget, one should choose those project's whose ____ exceeds the firm's ____ cost of capital

a. internal rate of return, average b. internal rate of return, marginal c. internal rate of return, historic d. average rate of return, marginal e. none of the above

Which of the following statements is not true about a market system?

a. The market system provides an incentive to consumers to acquire purchasing ability. b. The market system magnifies the problem of scarcity of goods and services. c. The market system provides an incentive for allocating resources. d. The market system provides an incentive to improve the quality of goods produced. e. The market system provides everything everyone wants to consume.