Replacing the simple Keynesian consumption function with the function based on the permanent-income hypothesis results in a ________ short-run multiplier, implying a ________ stable private economy
A) higher, more
B) higher, less
C) lower, more
D) lower, less
C
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Derivatives can be used to reduce risk, but they also can be a source of risk in themselves.
Answer the following statement true (T) or false (F)
In the Classical model, an increase in saving will result in saving being __________ than investment which will cause the interest rate to __________
A) greater; rise B) greater; fall C) less; rise D) less; fall
To decide whether Yi = ?0 + ?1X + ui or ln(Yi) = ?0 + ?1X + ui fits the data better, you cannot consult the regression R2 because
A) ln(Y) may be negative for 0
If people have more time to adjust to a price change, the price elasticity of demand for that good is likely to
a. increase b. decrease c. fall to zero d. become equal to -1 e. remain unchanged