The above figure shows one of Sam's indifference curves between gasoline and coffee. Which of the following about a movement along Sam's indifference curve is CORRECT?
A) As he moves leftward along the curve, he likes the combinations of gasoline and coffee better and better.
B) As he moves rightward along the curve, he likes the combinations of gasoline and coffee better and better.
C) He likes all combinations of gasoline and coffee along the curve equally well.
D) None of the above is true.
C
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Weakly dependent processes are said to be integrated of order zero.
Answer the following statement true (T) or false (F)
Two businesses coming together to form a single company is known as? a(n) __________.
A. hostile takeover B. acquisition C. leveraged buyout D. joint venture E. merger
The rational-expectations hypothesis suggests that the forecasts that people make concerning future inflation rates
A. consistently underestimate the actual rate of inflation in the future. B. consistently overestimate the actual rate of inflation in the future. C. are always correct. D. are correct on average, but are subject to errors that are distributed randomly.