What is the "reverse causality" problem in determining cause and effect?
A) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Z that caused a change in variable Y.
B) It is a problem that arises when two variables are inter-connected so that a change in variable X causes a change in variable Y, and a change in variable Y causes a change in variable X.
C) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X.
D) It is a problem that occurs when one observes that a change in variable X caused a change in variable Y which caused a change in variable Z and concludes that a change in variable X caused a change in variable Z.
C
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When a commercial bank receives a deposit, it must keep part of the deposit as cash reserves to satisfy its
A) loan requirements. B) interbank loans. C) required reserves. D) securities and loans. E) excess reserves.
The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $300 is imposed in the housing market, then
A) there would be a surplus of apartments. B) there would be a shortage of apartments. C) the market would reach equilibrium at the quantity of 60 housing units. D) the supply of housing would increase.
If this year's price level exceeds last year's
A) the inflation rate between these years has been positive. B) the inflation rate is accelerating. C) deflation is occurring. D) no relative price changes are occurring.
Refer to Figure 15-16. If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________
A) Q3 units; P4 B) Q1 units; P1 C) Q1 units; P4 D) Q5 units; P3