An example of a commitment device for Jane, who says she really wants to save more would be:
A. an agreement that she give any new clothes, jewelry, or makeup purchases to her best friend, and Jane is not allowed to borrow them.
B. a commitment to only buy things on sale.
C. a decision to cook her own food and not order take-out or delivery food unless she is too busy.
D. buying a piggy bank to store savings.
A. an agreement that she give any new clothes, jewelry, or makeup purchases to her best friend, and Jane is not allowed to borrow them.
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Inside lags are
A) longer for fiscal policy than for monetary policy. B) the same for fiscal policy and monetary policy. C) more variable for monetary policy than for fiscal policy. D) longer for monetary policy than for fiscal policy.
Would a profit-maximizing firm continue to operate if the price in the market fell below its average cost of production in the short run?
What will be an ideal response?
A country is likely to have a comparative advantage in a land-intensive activity if it has a:
A. lot of land relative to its population. B. large population relative to its landmass. C. higher opportunity cost of producing technology. D. large amount of capital equipment relative to its population.
Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, your deposit would initially add ____ to total demand deposits and over time increase the money supply by a maximum of ____
a. $10,000; $100,000 b. $10,000; $90,000 c. $1,000; $90,000 d. $1,000; $9,000