Which of the following is a positive side effect of business start-ups and the business failures that often follow?
a. The process makes it possible to try out numerous new ideas, and some of them will substantially improve our lives.
b. The process increases total employment, and leads to a lower rate of unemployment.
c. The process generates additional revenue for the government, which will then be used to produce goods and services that people value.
d. This is a trick question. There are no positive side effects of business failures.
A
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Suppose the marginal propensity to consume is 0.80 and taxes decrease by $10 billion. Which of the following is true?
a. Disposable income and consumption fall by $10 billion b. Disposable income and consumption rise by $10 billion c. Disposable income rises by $10 billion and consumption rises by $8 billion d. Disposable income falls by $10 billion and consumption falls by $8 billion e. Disposable income rises by $10 billion and consumption falls by $8 billion
Which of the following states the relationship between a bond's price and its yield?
a. As the price falls, the yield falls. b. Price and yield are usually independent of each other. c. As the price rises, the yield rises. d. As the price rises, the yield falls. e. As the yield rises, so does the price.