If people do NOT always make the same mistakes when forecasting the future, then
A. the policy irrelevance theorem holds.
B. the Fed can control monetary policy and determine real variables such as real GDP.
C. rational expectations are irrational.
D. fiscal policy is more effective than monetary policy at fine-tuning the economy.
Answer: A
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The three most important financial centers in the world today are New York, London, and Tokyo
Indicate whether the statement is true or false
A market supply schedule
A. combines the quantities supplied by all businesses in a market. B. has an upward-sloping demand curve. C. is all the products or services demanded in a market. D. is determined by adding demand and supply.
Answer the following statements true (T) or false (F)
1. In the median-voter model, the median voter refers to the voter who makes her choice at the midpoint of the voting period. 2. In the median-voter model, half the voters have stronger or more positive preferences than the median voter, while half of the voters have weaker or more negative preferences. 3. One prediction of the median-voter model is that during elections, candidates will tend to become "centrists". 4. One implication of the median-voter model as applied to a vote regarding how much government involvement to have in the economy is that most voters would find the resulting government involvement either too large or too small. 5. "Voter failure" is one cause of government failure.
The path of ________ over a lifetime is likely to be much more stable than the path of ________.
A. saving; income B. consumption; income C. saving; consumption D. income; consumption