The money rate of interest will be less than the real rate of interest when decision makers anticipate
a. stable prices in the future.
b. falling prices in the future.
c. inflation in the future.
d. that the money rate of interest will decline.
B
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Proponents of a command economy argue that it promotes:
a. efficiency. b. equity. c. consumer sovereignty. d. economic growth.
An example of peak pricing is charging
a. more for long-distance phone calls in the daytime. b. less for electricity at night. c. more for public transportation in rush hours. d. All of the above are true.
A savings account is an example of consumer income
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of an automatic stabilizer?
A. Congress authorizes spending increases during a recession. B. Congress increases the tax rate during an expansion. C. More unemployment benefits are paid during a recession. D. Welfare payments decrease during a recession.