Housing starts increase dramatically in the Spring and decrease dramatically in the Winter. For this reason, it is best to
A. focus on Winter to Spring declines.
B. politically adjust the data.
C. seasonally adjust the data.
D. focus on Spring increases.
Answer: D
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The ability of the Federal Reserve to use monetary policy to affect economic variables such as real GDP ultimately depends upon its ability to affect
A) nominal interest rates. B) foreign exchange rates. C) real interest rates. D) tax rates.
One reason that people hold money is to pay for unexpected car repairs and other unpredictable expenses. This motive for holding money is called:
a. transactions demand. b. precautionary demand. c. speculative demand. d. noncyclical demand.
Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?
a. M1 and M2 are both unchanged. b. M1 falls by $1,000 . and M2 rises by $1,000. c. M1 is unchanged, and M2 rises by $1,000. d. M1 falls by $1,000 . and M2 is unchanged.
Which of the following events would most likely increase the price elasticity of demand for scalping tickets to Chicago Bears games?
a. new uniforms for the players b. a winning season c. a decrease in the number of seats available at the stadium d. a losing season e. an increase in the number of seats available at the stadium