When a self-aware, present-biased individual invests in a commitment device that will bind him in the future, he will resent that commitment device when the future becomes the present.
Answer the following statement true (T) or false (F)
True
Rationale: The whole point of the commitment device is to force an action in the future that is judged to be worthwhile now but known to no longer be thought worthwhile when the future becomes the present.
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If a good is excludable, ________
A) one person's use of the good reduces the amount of the good available to others B) people can be prevented from using the good C) more than one person cannot use the good at the same time D) several people can use the good simultaneously
When the Fed extends a $100 discount loan to the First National Bank, reserves in the banking system
A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100.
Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to be less than 1/(MPS+MPI)
a. True b. False Indicate whether the statement is true or false
Since 1970, has the distribution of income in the US become more equal, less equal, or remained unchanged?