Which of the following theories of business cycles implies that efficient markets, characterized by perfect information and by rational business firms and households, will still be characterized by business cycles?
A) Lucas's rational expectation model
B) the natural rate hypothesis
C) the real business cycle model
D) classical theory
C
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The current slowdown in productivity growth afflicting most of the industrialized countries is commonly thought to have begun around
A) 1897. B) 1929. C) 1948. D) 1973. E) 1984.
If there is a surplus of euros at the current exchange rate, the exchange value of euros will tend to fall
a. True b. False Indicate whether the statement is true or false
Using income tax revenue to fund the welfare system illustrates the conflict between efficiency and equality
a. True b. False Indicate whether the statement is true or false
Small-denomination time deposits are
A. the same as transaction deposits. B. considered part of near money. C. included in the definition of both M1 and M2. D. included in the definition of M1, but not in M2.