Why is it important that consumers respond differently to temporary and permanent increases in their incomes?
A) This implies that consumption will be highly sensitive to temporary changes in income.
B) This implies that a temporary tax cut will have a larger effect than a permanent one on current consumption.
C) this tells us that the timing of income increases for consumers is irrelevant.
D) this has implications for the relative effects of temporary and permanent tax cuts.
D
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A dominant strategy refers to a strategy where one player knows he will always beat the other player
Indicate whether the statement is true or false
Macintosh and IBM computers are considered substitute goods. Other things constant, if IBM lowered its price, compared to the Mac, then
A) the demand for IBM computers would increase. B) the demand for Mac computers would increase. C) the quantity demanded for IBM computers would increase. D) all of the above would occur.
Before the 1970s, bankers were happy with interest-rate ceilings because those ceilings: a. reduced interest-rate competition for deposits among banks. b. guaranteed them high profits
c. guaranteed them a minimum profit. d. enabled them to expand into other lines of commerce. e. allowed them to hold corporate stock.
Which of the following unemployment types is the major concern of macroeconomics?
a. Frictional unemployment b. Seasonal unemployment. c. Underemployment d. Structural unemployment e. Cyclical unemployment.