The positive externality argument in favor of a city seeking a professional sports franchise is
A. that the benefits occur at a different time as the costs.
B. there are people in the city that will be happier when the team is in the city even if they do not buy tickets.
C. there are people in the city that will be happier when the team is in the city, and they will be the one who buy tickets.
D. the jobs created in the area will make it worth the investment.
Answer: B
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If we start from long-run general equilibrium of goods, forex, and the money markets, and there is a temporary expansion of the money supply, what will be the outcome?
A) GDP rises, the interest rate falls, and the exchange rate rises (depreciation). B) GDP rises, the interest rate rises, and the exchange rate falls (appreciation). C) GDP falls, the interest rate falls, and the exchange rate rises (depreciation). D) GDP falls, the interest rate rises, and the exchange rate rises (depreciation).
Which of the following is NOT a reason that credit ratings agencies became more relevant beginning in the late 1970s?
A) the number of bond defaults rose due to periods of recession and inflation B) rating agencies began to charge investors for their services C) governments began to include bond ratings in their regulation of banks, mutual funds, and other financial firms D) rating agencies began to rate bonds issued by foreign governments and firms