Hotelling's rule states that
a. The net price of a resource is constant
b. The net price of a resource rises at a rate equal to the interest rate
c. The net price of a resource declines at a rate equal to the interest rate
d. The price of a resource depends on the allocation of property rights
e. The price of a resource is efficient as long as all user costs are internalized
Ans: b. The net price of a resource rises at a rate equal to the interest rate
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Between 2001 and 2003, the Federal Reserve cut interest rates 12 times. This is an example of
A. nondiscretionary fiscal policy. B. contractionary monetary policy. C. discretionary fiscal policy. D. expansionary monetary policy.
Economic growth is achieved through: (check all that apply)
a. increased supplies of the factors of production. b. advances in technology. c. reduction in the quality of resources. d. decreased demand for the factors of production.