The crowding-out effect implies that a
a. budget surplus will be highly effective against inflation.
b. budget deficit is likely to stimulate aggregate demand and cause inflation.
c. budget deficit will increase real interest rates and, thereby, retard private spending.
d. budget surplus will retard aggregate demand and throw the economy into a downward spiral.
C
Economics
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An asset's beta can be used to compute its discount rate for an NPV calculation because the discount rate is equal to
A) rf + b(rm + rf). B) rf - b(rm + rf). C) rf - b(rm - rf). D) rf + b(rm - rf). E) beta itself.
Economics
Consider an economy made up of 100 people, 60 of whom old jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:
a. 10. b. 15. c. 40. d. 30. e. 90.
Economics