If people expect prices to fall in the future,
a. their consumption function in the present will shift downward.
b. their consumption function in the present will shift upward.
c. their consumption function in the present will be unchanged.
d. they will increase their current levels of consumption by moving up along their consumption functions.
e. they will decrease their current levels of consumption by moving down along their consumption functions.
d
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Figure 33-6
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Figure 33-6 (b) illustrates that
A. in the short run, it is possible to “ride the Phillips curve” down toward lower rates of inflation. B. in the short run, it is possible to “ride the Phillips curve” up toward lower unemployment by stimulating aggregate demand. C. the Phillips curve connecting points g, e, and r is not a menu of policy choices. D. All of these responses are correct.
Like other major government programs, an individual knows his contributions to Social Security from the information on his W-2 form
a. True b. False
Someone saying that he wants to lose weight, but ordering dessert is an example of:
A. rational decision making. B. rational behavior. C. irrational behavior. D. utility-maximizing behavior.
If the actual federal funds rate is 7 percent and the Fed's target federal funds rate is 8 percent, the Fed is most likely to adopt which of the following policies?
A. A sale of government bonds B. A reduction in the reserve requirement C. A purchase of government bonds D. A more expansionary monetary policy