Changes in the quality of a good
a. do not present a problem in the construction of the consumer price index.
b. present a problem in the construction of the consumer price index, and that problem is sometimes referred to as substitution bias.
c. are not accounted for, as a matter of policy, by the Bureau of Labor Statistics.
d. can lead to either an increase or a decrease in the value of a dollar.
d
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Which of the following are short-term financial instruments?
A) a repurchase agreement B) a share of Walt Disney Corporation stock C) a Treasury note with a maturity of four years D) a residential mortgage
One of the major weaknesses of the Federal Reserve Bank of St. Louis econometric model was that it
A) was large and cumbersome. B) was limited to analyzing an economy with substantial unemployment. C) did not specify the categories of private spending that were affected by monetary policy. D) included a government spending multiplier that was clearly too high.
Mergers and acquisitions
A) are usually associated with business success. B) are usually successful as management styles usually blend easily. C) are illegal if the firms were competitors. D) can sometimes lead to the loss of a core competency. E) can be successful if they add to the value chain.
As the time to respond to a change in market conditions increases, the odds of supply being elastic: a. Increase
b. Decrease. c. Stay the same. d. Cannot be determined.