Some economists believe that policy makers should avoid stabilization policy because
a. lags make the policy impact unpredictable.
b. no tax cut ever stimulated demand.
c. stabilization policies are rarely signed into law.
d. it never works.
a
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Which of the following is the central bank of the United States?
A) Comptroller of the Currency B) Treasury Department C) Federal Reserve System D) Office of the Budget
If Coke and Pepsi are close substitutes, then if:
a. Coke raises its price, so will Pepsi. b. Coke raises its price, it will not lose customers to Pepsi. c. Pepsi lowers its price, it will not hurt Coke. d. Pepsi lowers its price, so will Coke. e. Coke raises its price, some customers will switch to Pepsi.
After a hurricane, several gas stations decide to keep their gas prices at the prehurricane level. An economist who most likely believes that there has to be some rational reason for this behavior is more than likely a(n):
A. engineering economist. B. irrational economist. C. traditional economist. D. Keynesian economist.
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Suppose there is a 20 percent chance that the advertising game depicted in Figure 10-17 will end next period. What is the present value to firm B of cheating on the collusive strategy {do not advertise, do not advertise}?
A. $125 B. $10 C. $0 D. $175