When there is a change in one market, _______________ are effected
Fill in the blank(s) with the appropriate word(s).
Ans: other markets
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During 2003, the Federal Reserve began to openly discuss deflation. Their comments suggested they
A. knew it was something to watch because of the Japanese experience of the 1990s, but did not alter policy significantly to combat it. B. were neutral about whether deflation would be a good thing. C. were enthusiastic about the possibility. D. knew it would be a disaster, so they immediately cut the target federal funds rate by 5 percentage points to avoid the possibility.
During a recession you would expect the difference between the commercial paper rate and the yield on U.S. T-bills of the same maturity to:
A. be the same since their maturities are the same. B. fluctuate rarely. C. increase reflecting the possibility of higher default risk for commercial paper. D. decrease.
Using a Website created by the Sacramento Bee in 2008 that published the salaries of all California state employees, economists conducted research and found that
A) job satisfaction depends only on a person's salary. B) employees with above-median earnings were, surprisingly, the least satisfied with their jobs. C) knowing their co-workers' salaries affected employees' job satisfaction. D) no employees seemed to be unsatisfied with their jobs or the salaries they were earning.
As disposable income increases, consumption:
A. may either increase or decrease depending on the mpc. B. decreases. C. may either increase or decrease depending on the wealth effect. D. increases.