Time inconsistency refers to a situation where:
A. we change our minds about what we want in response to gaining complete information.
B. we change our minds about what we want simply because of the timing of the decision.
C. we typically choose the same thing, regardless of when the decision is being made.
D. None of these statements is true.
B. we change our minds about what we want simply because of the timing of the decision.
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The federal funds market refers to the market where:
A) the Fed obtains loans of reserves from central banks of other nations. B) the federal government borrows overnight funds from the Fed. C) banks obtain loans of reserves from each other. D) there are no predetermined rates of interest on loans and the highest bidding borrower gets the loan.
Labor productivity is $20 per hour and aggregate hours are 400 billion hours
a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour. Furthermore, assume that aggregate hours decrease to 300 billion hours. What does real GDP equal?
In the above figure, between x = 2 and x = 3, what is the slope of the line?
A) 1 B) -1 C) 2 D) 3
Government payments made to ________ firms in order to encourage ________ are called subsidies.
A. domestic; exports B. domestic; imports C. foreign; imports D. foreign; immigration