The larger the fraction of an investment financed by borrowing
A) the greater the potential return and potential loss on that investment.
B) the smaller the potential return and potential loss on that investment.
C) the greater the potential return and the smaller the potential loss on that investment.
D) the smaller the potential return and the greater the potential loss on that investment.
Answer: A
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If the MPC in an economy is .75, government could shift the aggregate demand curve leftward by $60 billion by:
A. reducing government expenditures by $12 billion. B. reducing government expenditures by $60 billion. C. increasing taxes by $15 billion. D. increasing taxes by $20 billion.
Employers near military bases are aware that wives generally accompany their servicemen husbands when they are transferred. When presented with nonservice-wife applicants and wives of servicemen, they hire the nonservice-wife applicants. This is an example of
A. gender discrimination. B. statistical discrimination. C. economic discrimination. D. prejudicial discrimination.