For an economist, the idea of making assumptions is regarded generally as a
a. bad idea, since doing so leads to the omission of important ideas and variables from economic models.
b. bad idea, since doing so invariably leads to data-collection problems.
c. good idea, since doing so helps to simplify the complex world and make it easier to understand.
d. good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.
c
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The Federal Reserve discount rate is the rate of interest charged on loans from ________ to ________.
A. the U.S. Treasury; commercial banks B. commercial banks; the Federal Reserve C. the Federal Reserve; commercial banks D. the Federal Reserve; the U.S. Treasury
Consumers who do not consistently discount the future over time are likely to ________
A) under-report their taxable income B) be unprepared financially for retirement C) opt in to employer-sponsored savings plans D) make excessive sacrifices on behalf of their children
In economics, the term marginal refers to
a. the change or difference between two alternatives. b. man-made resources as opposed to natural resources. c. the satisfaction a consumer receives from a good. d. holding everything else constant in the analysis.
The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. M2 money multiplier to remain the same. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to rise.