According to the rational expectations theory, expansionary monetary policy will
a. reduce inflation.
b. lead to inflation and the higher rate of inflation will be quickly anticipated.
c. reduce unemployment because people will generally underestimate the inflationary side effects of the monetary expansion.
d. accelerate inflation in the short run, but in the long run the primary effect will be an increase in employment.
B
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In tit-for-tat, if your partner ________ in your first interaction, then you will ________ in your next interaction.
A. defects; cooperate B. defects; defect C. defects; refuse to play D. cooperates; defect
An advance in technology results in:
a. suppliers offering a larger quantity than before at each given price. b. suppliers offering the same quantity as before at a lower price. c. a rightward shift of the supply curve. d. an increase in supply. e. all of these.
If a given production combination is known to be attainable, then it:
A. could be either an inefficient or efficient point. B. must be an inefficient point. C. must be an efficient point. D. must be on the production possibilities curve.
Interstate banking
A. used to be legal but is now illegal. B. used to be illegal but is now legal. C. is illegal today and has always been illegal. D. has always been legal.