Public choice theory assumes that voters, politicians, and other political participants are largely motivated by:
a. personal self-interest
b. altruism.
c. a desire to promote the general welfare.
d. a desire to promote allocative economic efficiency.
a
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Which group of investors vote for a corporation's board of directors?
A) bond holders B) holders of preferred stock C) holders of common stock D) both holders of common and preferred stock
In an open economy, desired domestic lending
A) must equal desired domestic borrowing. B) must equal desired domestic borrowing plus the amount of international lending. C) is always greater than desired domestic borrowing. D) is always less than desired domestic borrowing.
Under a fixed exchange rate system, at low domestic real interest rates the demand for domestic currency ________, so the central bank ________ foreign-exchange reserves
A) increases; acquires B) increases; loses C) decreases; acquires D) decreases; loses
For a fixed target real interest rate and target inflation rate, when inflation decreases, the Fed ________ interest rates, hence ________ short-run equilibrium output.
A. increases; increasing B. decreases; decreasing C. increases; decreasing D. decreases; increasing