As the price level rises
a. people are more willing to lend, so interest rates rise.
b. people are more willing to lend, so interest rates fall.
c. people are less willing to lend, so interest rates fall.
d. people are less willing to lend, so interest rates rise.
d
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According to behavioral economics, participants in a half-marathon are likely to have trained
a. more than they planned and run faster than they anticipated. b. more than they planned but run slower than they anticipated. c. less than they planned and run slower than they anticipated. d. less than they planned but run faster than they anticipated.
Which of the following statements is not correct regarding taxes?
A. The largest source of state and local governments tax revenue is sales and excise taxes. B. The largest source of federal government tax revenue is individual income taxes. C. A sales tax on food is a regressive tax. D. A proportional tax is equal to a fixed dollar amount.
Because models are used to explain economic behavior
A) the assumptions must be complex while the models themselves are simple. B) models must be complex. C) models must be simple. D) models can be either simple or complex so long as it explains economic behavior.