Economics

The benefits from research and development activities A) spill over t

The benefits from research and development activities A) spill over to others, including foreign residents. B) are limited to the firms investing in similar research and development projects. C) are limited to the nation in which the research and development is taking place. D) are limited to the firm winning a patent.   ANSWER A

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Date: September 2nd, 2020

Fiscal policy A) uses the tool of interest rates to stimulate private

Fiscal policy A) uses the tool of interest rates to stimulate private savings. B) uses the tools of taxation and spending in an effort to address inflation and unemployment. C) uses the tool of the exchange rate to discourage imports. D) uses the tool of business regulation to increase economic efficiency.   ANSWER B

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Date: September 2nd, 2020

Suppose a country has no trade with other countries and people can bor

Suppose a country has no trade with other countries and people can borrow as many funds as they want at the current interest rate. An increase in the price level will generate A) a decrease in total planned real expenditures because of the real-balance effect. B) a decrease in total planned real expenditures because the […]

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Date: September 2nd, 2020