When an outcome is weighted by a probability, it becomes an expected value
Indicate whether the statement is true or false
True
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In an open economy with strong international trade, increases in government spending are likely to have an overall "crowding out" effect
Indicate whether the statement is true or false
Suppose the economy of Catalania is experiencing a recession and policy makers decide to implement an expansionary monetary policy. After the implementation of the policy, there is a considerable time gap before the effect of the policy on the major economic variables is noticed. This is an example of: a. the neutrality of money. b. an inflationary gap
c. an administrative lag. d. an operational lag.
If average income increases, ceteris paribus, then there will be:
a. A movement along and a shift in the demand curve b. A shift of the demand curve. c. No effect on the demand curve, because income is not a ceteris paribus condition d. A movement along the demand curve
Which of the following goods is least likely to be in a market basket?
A. Streetlamps B. Airfare C. Coffee beans D. Shuttle service