Economists assume people behave rationally, which means that people
A) never make a mistake.
B) do not intentionally make decisions that make themselves worse off.
C) have the necessary information to always make correct decisions.
D) always understand the consequences of their decisions.
B
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Which is the smallest component of aggregate expenditure?
A) net export expenditures B) consumption expenditures C) government expenditures D) planned investment expenditures
Unlike Germany, Japan has
A) a suppressed corporate debt market. B) laws against banks holding corporate stock. C) a large stock market. D) close ties between a firm and a single bank.
When people become unemployed because of a higher minimum wage, this type of unemployment is called
What will be an ideal response?
Monetary policy could be procyclical if the Federal Reserve
A) is late recognizing that a recession has begun and conducts expansionary monetary policy. B) is quick to recognize that a recession has begun and conducts expansionary monetary policy. C) is late recognizing that a recession has begun and does not conduct expansionary monetary policy. D) is quick to recognize that a recession has begun and does not conduct expansionary monetary policy.