When disposable income is 2,000.
A. savings is zero.
B. consumption is 2,000.
C. consumption equals disposable income.
D. All the choices are true.
D. All the choices are true.
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How do you determine is a foreign exchange market is efficient?
A) See if the market rates adjust quickly to new and relevant information. B) See if systematic profit opportunities are quickly eliminated. C) See if forward rates are equal to expected future spot rates. D) All of the above should be true if a foreign exchange market is efficient.
The Phillips curve shows the trade-off between: a. unemployment and inflation
b. low interest rates and high levels of investment. c. economic growth and inflation. d. consumption and investment.
Which of the following is not considered to be a shadow bank?
A. Money-market mutual funds B. Insurers C. Credit unions D. Brokerages
Which of the following is a long-run adjustment?
A. A firm lays off two workers. B. Two firms exit the asbestos removal industry. C. A manufacturer increases its purchase of raw materials. D. A farmer buys twice the usual amount of herbicide.