Expansionary fiscal policy is used to increase aggregate demand in an attempt to fight rising inflation
Indicate whether the statement is true or false
FALSE
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If the U.S. government decides to increase military spending, a possible opportunity cost could be lower spending on education.
Answer the following statement true (T) or false (F)
Which of the following statements about utility and preferences is false?
A) If Sidra prefers tea to coffee and coffee to hot chocolate, then she must prefer tea to hot chocolate. B) If two individuals, Ingrid and Inez, each consume the same bundle of goods, then both Inez and Ingrid must receive the same utility from the bundle. C) Utility cannot be compared across consumers. D) Preferences can be ranked.
The time consistency problem implies that
A) the central bank should not commit. B) central bank commitment is useful. C) discretion is better than tying your hands. D) there are problems we cannot solve.
Which of the following components are involved in microeconomics?
a. aggregate economy; firms; agricultural subsidies b. aggregate economy; households; inflation c. smaller economic units; households; income distribution d. smaller economic units; firms; business cycles