When individuals use ________ about an economic variable to make a decision, expectations are rational
A) only historical information B) all available information
C) only information garnered in the private sector D) only information announced by the Fed
B
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Americans whose jobs have been lost to free trade should, in theory:
A. leave the workforce, in the long run. B. gain surplus, as the income effect outweighs the price effect of their labor. C. be able to find new jobs, given time. D. have extended bouts of unemployment due to static job skills.
Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 3 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive but less than $10,000. B. zero. C. negative. D. positive and greater than $10,000.
The goal of the firm is
A) low labor turnover. B) to maximize sales. C) to minimize costs. D) profit maximization.
Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the required reserve ratio to 15% causes the M1 money multiplier to ________, everything else held
constant. A) increase from 0.15 to 0.33 B) increase from 0.54 to 0.67 C) decrease from 0.73 to 0.71 D) decrease from 1.67 to 1.54