In the U.S., when the price of oil rises, the CPI rises by much more than does the GDP deflator
a. True
b. False
Indicate whether the statement is true or false
True
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The change in total planned real expenditures resulting from a change in the real value of money balances when the price level changes, all other things held constant, is
A) the real-balance effect. B) the interest rate effect. C) the open economy effect. D) demand side inflation.
The Condorcet paradox can arise with:
A. first-past-the-post voting. B. approval voting. C. run-off elections. D. pair-wise majority voting.
What determines the creditworthiness of any organization, including the federal government?
a. the size of its debt relative to its income base b. the interest rate at which it can borrow money c. the length of time it has existed d. the length of time it is expected to operate
Judy is planning to sell an antique grandfather clock that she values at $200. If she sells the clock on Craigslist, it will be bought by someone who values it at $450. If she uses an antique dealer to sell the clock, it will be bought by someone who values it at $850. The antique dealer will charge Judy $100 to sell the clock, which just covers the antique dealer's opportunity cost of selling the clock. Relative to selling the clock on Craigslist, selling the clock through an antique dealer will lead:
A. to no change in total economic surplus. B. total economic surplus to increase by $400. C. total economic surplus to increase by $300. D. total economic surplus to decrease by $100.