Which of the following has NOT been one of the primary sources of economic growth over the last 200 years?
A) investment in new capital
B) resource conservation
C) investment in human capital
D) discoveries of new technology
B
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Suppose you hit a progressive jackpot on a 25-cent Fortunemaker slot machine in a casino in Las Vegas and are given the choice of the following prizes:
Prize 1: $200,000 to be received right away, with four additional payments of $200,000 to be received each year for the next four years. Prize 2: $750,000 to be received right away. If the interest rate is 3 percent, what is the present value of each prize?
RBC theorists claim that adverse supply shocks can take forms other than rising raw materials prices. One such shock comes from government policy:
A) reductions in government expenditure. B) increases in tax rates. C) more rigorous environmental regulation. D) reductions in the money growth rate.