Suppose an individual has to make a decision at time t without having all the information relevant for making the decision. At time (t+1), the relevant information is revealed. We will say that the individual made a mistake if his decision in time t would have been different had he known what he knows at time (t+1). True or False: Without behavioral economics, we would not be able to explain mistakes.
Answer the following statement true (T) or false (F)
False
Rationale: Many decisions we later think of as mistakes are made in environments where we don't find out some of the information until later. In such cases, rational economic decision making can lead to choices that will be viewed as mistakes later on when more information is available.
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In the balance of payment accounts, transactions that bring in money are treated as debit and the transactions that take away money are treated as credits
a. True b. False Indicate whether the statement is true or false
If the reserve ratio is 5 percent, then $500 of additional reserves can create up to
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The view that many welfare mothers have baby after baby to keep their welfare checks rising is a view held by
A. many conservatives. B. many liberals. C. both many liberals and conservatives. D. neither many liberals nor many conservatives.