According to new Keynesian theory, if policy is correctly anticipated, increases in aggregate demand will stimulate the economy to higher levels of Real GDP and lower levels of unemployment in
A) the short run or the long run.
B) neither the short run nor the long run.
C) the short run, but not in the long run.
D) the long run, but not in the short run.
C
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Government debt "crowds out" private investment because
A) the government and private firms compete in the same market for savings. B) private firms stop borrowing money when the government enters the market. C) the government's increased demand for loans decreases interest rates. D) the government can order the public to buy bonds.
Suppose a university refunds students 75% of their tuition if they drop out before the third week of class, 50% if they drop out between their third and fifth week, 25% if they drop out between their sixth and eighth week, and 0% after the eighth
week. Flint paid $1,000 tuition, and is in his fourth week of class. What's his sunk cost? A) $0 B) $250 C) $500 D) $750 E) $1,000