Classical macroeconomists argue that the short-run Phillips curve ________ represent a usable trade-off for policymakers because ________
A) does; people have rational expectations
B) does; people do not have rational expectations
C) does not; people do not have rational expectations
D) does not; people have rational expectations
D
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Which of the following statements is correct?
A. The federal funds rate is derived based on the prime rate. B. The prime rate involves longer, more risky loans than the federal funds rate. C. The federal funds rate is the rate banks charge their most creditworthy customers. D. The discount rate is the rate banks charge one another on overnight loans.
Which of the following classifications is correct?
A. City streets are consumption goods because they wear out with use. B. Stocks are capital goods because when people buy and sell them they make a profit. C. The coffee maker in the coffee shop at an airport is a consumption good because people buy the coffee it produces. D. White House security is a government service because it is paid for by the government..
The U.S. financial system is a(n) __________ system
A) markets-oriented B) angel financing C) banking-oriented D) loan committee
An opportunity cost is the highest valued alternative foregone whenever one chooses an alternative
a. True b. False Indicate whether the statement is true or false