During the 1987-88 expansion period interest rates in the United States rose as did the rate of investment in the economy. These facts suggest
A) the simple accelerator effect and the effects of higher interest rates complemented each other to raise output growth.
B) the simple accelerator effect and the effects of lower interest rates complemented each other to lower output growth.
C) the effects of the accelerator were greater than those of increased interest rates.
D) the effects of the accelerator were smaller than those of increased interest rates.
C
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During the U.S. Great Moderation, ________
A) the volatility in the inflation rate declined by 50% B) the volatility in the rate of growth of real output declined by 33% C) the economy stabilized from the higher uncertainty of the 1970s D) all of the above E) none of the above
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a. Many sellers. b. A single seller. c. A unique product. d. Impossible entry into the market.
Wild animals are likely to be
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