The phenomenon of overshooting is based on the existence of
A. irrational investor behavior.
B. perfectly competitive global markets and flexible prices.
C. covered interest parity.
D. sticky prices and the belief that purchasing power parity(PPP) and the monetary approach hold in the long run.
Answer: D
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Ways to "game" the budgeting process include
a. delaying sales if just short of a target b. accelerating expenses if just short of a target c. delaying sales once a target is met d. delaying expenses costs once a target is met
Which of the following is an example of capital?
a. pizza ovens b. bulldozers c. a college education d. carpentry skills e. all of the above
The higher the level of inflation, the stronger the impact of reductions in the personal income tax on real GDP
a. True b. False Indicate whether the statement is true or false
When the government provides food stamps to low-income households:
A. the household definitely purchases more food. B. the household purchases less food. C. purchases of food may increase or decrease. D. the household's utility is greater than if they received cash aid.