During inflationary recessions
B. neither conventional monetary nor fiscal policy would work.
C. conventional monetary policy would work, but conventional fiscal policy would not work.
D. conventional fiscal policy would work, but conventional monetary policy would not work.
B. neither conventional monetary nor fiscal policy would work.
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Which of the following does not reflect a positive rate of time preference?
a. Concert-goers yell and scream when the stage is still dark an hour after the concert was scheduled to start. b. Borrowers have to pay interest on loans. c. A dieter, allowed three ounces of butter per day, spends the whole allotment on her toast at breakfast. d. A dieter, allowed three ounces of butter per day, promises himself some new clothes if he can break the habit of spending the whole allotment on his toast at breakfast. e. A student stays up late every night for a week to finish her term paper two months before it is due.
Danita rescues dogs from her local animal shelter. When Danita's income rises by 7 percent, her quantity demanded of dog biscuits increases by 12 percent. For Danita, the income elasticity of demand for dog biscuits is
a. negative, and dog biscuits are a normal good. b. negative, and dog biscuits are an inferior good. c. positive, and dog biscuits are an inferior good. d. positive, and dog biscuits are a normal good.
Critics of the Fed’s unconventional policies in 2009 and 2010 argued that determining which financial institutions would be bailed out and which would be allowed to fail was a political decision that rightfully belonged to Congress.
Answer the following statement true (T) or false (F)
Assume that the substitution effect dominates the income effect. An increase in both consumption and labor supply would result from
A. a decrease in tax rates. B. an increase in tax rates. C. an increase in transfer payments. D. a decrease in transfer payments.