Steve is finding it impossible to get over his most recent break-up and finds himself talking about her constantly. An example of a commitment device that Steve could use to get over her would be:
A. to allow Steve's best friend to punch him in the arm any time he mentions her name.
B. to take a cold shower every morning.
C. to start dating someone else.
D. None of these is a commitment device.
A. to allow Steve's best friend to punch him in the arm any time he mentions her name.
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Which of the following schools of thought reject the simple fixed-price model in favor of a model in which the aggregate supply curve is relatively flat at low levels of real GDP and slopes upward as real GDP approaches its potential level?
a. The new Keynesian b. The monetarist c. The traditional classical d. The new classical e. The Marxist
Which of the following statements describes the situation shown?
a. There is an incentive for capital funds to flow from the United States to the United Kingdom.
b. The equilibrium interest rate is 5 percent in the United States and 3 percent in the United Kingdom.
c. U.S. investors will be tempted by the interest rate in the United Kingdom.
d. Investors in the United Kingdom will be tempted to keep their funds in their own country.
If the economy automatically tends toward full employment, then government stabilization policy
A. must be constantly in force. B. will be necessary only in recessions. C. will be necessary only in inflationary periods. D. will not be necessary.
The discount rate is
A) the interest rate paid when a bank borrows reserves from another bank. B) the interest rate paid when a commercial bank borrows reserves from the Fed. C) the reduction in the interest rate given to the bank's best customers. D) another name for the long-term interest rate. E) the interest rate the Fed pays banks for the reserves the banks keep at the Fed.