The conventional view among economists is that persistent budget deficits lead to a ________ capital stock and a ________ level of potential GDP in the long run

You draw colored balls out of a bag. You draw a red ball 30% of the time and a blue ball 70% of the time. For each draw, the blue outcome and the red outcome are

A) mutually exclusive. B) exhaustive. C) Both A and B. D) None of the above.

Which of the following is true of the present value of an investment?

a. The higher the rate of interest the higher will be the present value of an investment. b. Present value of an investment is an increasing function of the time period of investment. c. The longer the time period of investment the lower will be its present value. d. Present value falls less than proportionately with the length of the delay in payment.