An increase in the price level, other things remaining the same, may be expected to result in ____ the consumption function.
A. a downward shift of
B. a movement along
C. an upward shift in
D. no effect on
Answer: A
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The time-inconsistency problem in monetary policy can occur when the central bank conducts policy
A) using a nominal anchor. B) using a strict and inflexible rule. C) on a discretionary, day-by-day basis. D) using a flexible, discretionary rule.
A business manager who observes that prices in general keep rising might infer, correctly, that now is a good time to ________
A) invest to expand the business B) raise the price of her product C) expect an increase in business profits D) expect a higher return on personal savings E) all of the above
The Congress of Industrial Organizations (CIO) was formed in 1938 by
A) John L. Lewis. B) Samuel Gompers. C) Walter Reuther. D) Ralph Nader.
Assume X and Y are the only two goods a person consumes. If after a rise in the quantity demanded of Y increases, one could say
a. the income effect dominates the substitution effect for Y. b. the substitution effect dominates the income effect for Y. c. it is impossible to determine whether the substitution or income effect dominates for Y. d. None of the above.