Explain what a PAYGO rule is
What will be an ideal response?
A PAYGO rule requires that any newly proposed government program will have no effect on either the current or future budget deficits. This implies that proponents of a new program must either propose tax increases to pay for the program or cuts in other programs.
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Which aspects of a bank's operations are evaluated as part of the CAMELS rating system?
What will be an ideal response?
The vertical intercept of the consumption function is used to determine the break-even level of real disposable income
a. True b. False Indicate whether the statement is true or false
A decrease in the price of a nonlabor input such as machinery
A) shifts the SRAS curve to the right. B) shifts the SRAS curve to the left. C) causes an upward movement along the existing SRAS curve. D) causes a downward movement along the existing SRAS curve. E) none of the above
Explain why price discrimination solves the welfare loss problem of monopoly, but then describe the downside of solving the welfare loss problem this way.
What will be an ideal response?