Fiscal and monetary policies adopted by the Carter administration in the first half of his term resulted in:
a. stable prices and low unemployment.
b. deflation.
c. a rapid rise in the inflation rate.
d. a balanced federal budget.
c. a rapid rise in the inflation rate.
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Insurance is possible and can be profitable because of
A) private information. B) adverse selection. C) moral hazard. D) consumers are risk aversion.
The sale of __________ goods is omitted from current GDP because __________
A) intermediate goods; these goods do not constitute production B) used goods; these goods were counted in an earlier year C) illegal; these goods do not constitute economic value D) b and c E) a, b, and c
Which of the following often implies that a single variable acts as a ‘sufficient statistic’ for predicting the outcome variable, y?
A. Ceteris paribus B. Conditional independence assumption C. Efficient markets theories D. Gauss-Markov theorem
The most likely way the public debt burdens future generations, if at all, is by:
A. reducing the current level of investment. B. reducing real interest rates. C. causing deflation. D. causing future unemployment.