1. The president, despairing over the news that the economy is in a recession, would not be able to do the following:

increase the government deficit

decrease the tax rate

increase tariffs

increase the money supply

2.

The stock market going up:

Predicts that the economy will never expand

Does not predict anything about the economy

Predicts that the economy has expanded

Predicts that the economy is going to expand

3.

Which of the following industries are likely just earning their cost of capital?

Software

Pharma

Financial services

Grocery store