If there is a political business cycle and the Federal Reserve supports the incumbent, then we should expect that prior to elections
a. interest rates and output would rise.
b. interest rates would rise and output would fall.
c. interest rates would fall and output would rise.
d. interest rates and output would fall.
Ans: c. interest rates would fall and output would rise.
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From an economist's perspective, why are property rights and the rule of law so important for economic development?
A. They create incentives and stability for economic growth and development. B. They discourage all criminal activity that encourages economic growth and development. C. They provide a creative environment that encourages economic growth and development. D. They prevent other countries from benefiting from trade, which helps our economic growth and development.
Money that is backed solely by a government decree is referred to as fiat money.
Answer the following statement true (T) or false (F)
When demand is elastic,
A) changes in price and changes in total revenue move in the same direction. B) there is no relationship between changes in price and changes in total revenue. C) changes in price and changes in total revenue move in opposite directions. D) for any change in price, total revenue will not change.
A normal good is defined as a product for which quantity demanded increases as price decreases
a. True b. False