The principle economic cost of growth is
A. higher inflation rates.
B. higher interest rates.
C. investment in stocks and bonds.
D. current consumption sacrificed for capital formation.
Answer: D
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Giving in to the demand of protestors, suppose the French government reduces the tax on gasoline by 15 percent. Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic
As a result of the tax cut, the price for a gallon of gasoline paid by buyers A) falls by 15 percent. B) rises by 15 percent. C) falls by less than 15 percent. D) rises by less than 15 percent. E) falls by more than 15 percent.
If price of product A increases by 10%, and the quantity demanded for product B drops by 50%, then these two products are
A) substitutes. B) complements. C) normal goods. D) inferior goods.