Keynesians assume that there is a powerful direct link between aggregate demand and
A) velocity.
B) real money balances.
C) exogenous investment spending.
D) interest rates.
C
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Some policymakers have proposed giving parents of children in poorly performing schools tax dollars to help send their children to private schools. This proposal is an example of
A) vouchers. B) public provision. C) external costs. D) taxes. E) correcting an externality using a government good.
If the marginal utility to Juan of sleeping an extra hour (from 8 a.m. to 9 a.m.) is negative,
A. Juan is better off getting up at 8 a.m. B. Juan is better off getting up at 9 a.m. C. Juan’s total utility from sleeping must be negative. D. Juan’s average utility from every hour he sleeps must be negative.
At the national level, a Board of____________ runs the Federal Reserve.
a. Representatives b. Presidents c. Governors d. Banks
At the interest rate r, the price of a depletable natural resource three years from the present (price in present = P) will be, everything else being equal, which of the following?
A. 3P B. P3 C. P(1 + r)3 D. 3P(1 + r)3