If speculation is that a recession is around the corner, which means that our future incomes will most likely fall, then the effect of all this on the economy now will be
a. an upward movement along the AD curve
b. a downward movement along the AD curve
c. the AD curve shift to the left
d. the AD curve shift to the right
e. the AS curve shift to the right
C
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Which of the following would be part of the nation's financial account?
A) A night club show seen by an American in Mexico City B) A dividend from a British equity owned by an American C) A payment to the Philippine government for the use of military bases in their country D) One hundred shares of British Petroleum stock purchased by an American
To induce an agent to work hard, a principal may offer the agent a bonus, in other words, an extra payment if a performance target is hit
Suppose that the agent's performance is affected by factors beyond the agent's control, for example umbrellas are demanded more on a rainy day. Under what conditions may the bonus not induce the agent to work harder? A) The agent is very risk averse. B) The agent is very risk loving. C) The agent is risk neutral. D) The principal is risk neutral.