The Keynesian consumption function implies that at a given moment persons with high incomes are saving ________ persons with low incomes, a prediction which is ________ by actual cross-section consumption data
A) a lower fraction of income than, confirmed
B) a lower fraction of income than, not confirmed
C) a higher fraction of income than, confirmed
D) a higher fraction of income than, not confirmed
E) the same fraction of income as, confirmed
C
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In economics, international trade is based on the existence of
A) absolute advantage between countries. B) relative advantage between countries. C) comparative advantage between countries. D) output advantage between countries.
The following does not represent a threat to internal validity of randomized controlled experiments:
A) attrition. B) failure to follow the treatment protocol. C) experimental effects. D) a large sample size.
Because the inflation rate is so high Wanda refuses to carry cash. Even though it is a bother, she now goes to the ATM twice as often to get the cash she needs. Wanda's actions are an example of the
A) tax distorting costs of inflation. B) uncertainty costs of inflation. C) tax costs of inflation. D) shoe-leather costs of inflation. E) confusion costs of inflation.
If the current price of a bond is less than its face value,
A) an investor will receive a capital gain by holding the bond until maturity. B) the yield to maturity must be less than the current yield. C) the coupon rate must be greater than the current yield. D) the coupon rate must be equal to the current yield.