The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
You might also like to view...
The median-voter theorem suggests that:
A. politicians maximize their votes by taking the policy position preferred by the median voter, under certain conditions. B. Politicians always receive more votes in general elections when they appeal to extremists in their party. C. the middle voter is generally influenced by the side they have more information on concerning an issue. D. voters tend to vote with a "mob-mentality," all voting the same.
Invention cannot be successful financially if price is
a. greater than marginal cost because invention is based largely on social costs. b. greater than marginal cost because invention is based solely on external costs. c. equal to marginal cost because invention is based largely on variable costs. d. equal to marginal cost because invention is based largely on fixed costs.
Which one of the following statements is true about the Affordable Care Act?
a. The final version of the ACA passed without a single Republican voting for its passage. b. The final version of the bill that passed was closer to the House version than the Senate version. c. As proponents promised, only high-income taxpayers are paying the new taxes included in the legislation. d. The typical family is now paying less for their health insurance thanks to the strict health insurance regulations included in the act.
When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is _______, so the quantity of money demanded will be _______.
A. Low; low B. Low; high C. High; low