Savers are willing to lend out money because:
A) they prefer to spend money in the future rather than today.
B) the rate of inflation in an economy is normally positive.
C) of altruism.
D) the rate of inflation in an economy is normally negative.
A
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Assume a unit tax of $4 is placed on suppliers. They are able to pass along some of the tax to suppliers as evidenced by prices rising from $5 per unit to $7 per unit. Output declines from 10 units to 8 units
What is the ratio of the demander's share of the tax burden to the suppliers? a. 2.5 b. 2.0 c. 1.5 d. 1.0
Centrally planned economies use free-market systems for their production planning.
Answer the following statement true (T) or false (F)
In 1979, Fed Chair Paul Volcker
a. instituted an accommodative monetary policy to address adverse supply shocks. b. believed that inflation had not yet reached unacceptable levels. c. believed decreasing inflation would temporarily decrease output growth. d. All of the above are correct.
The model: yt = 
0 +
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yt - 1+ 
1zt -1 +vt, where vt = ut- ut -1 represents a:
A. finite distributed lag model.
B. simultaneous equations model.
C. rational distributed lag model.
D. vector error correction model.