April lives in a heavily Democratic voting community. Every election, the Democratic candidates win by a large margin. Since April believed that she already knew what the outcome would be, she has not sought out candidate information or voted for the past few elections. Ben tells her she has displayed rational ignorance. What does Ben mean?
a. April is really showing a lack of intelligence by not getting involved.
b. From April’s perspective, it makes sense not to waste her valuable time voting.
c. April is not a mind reader and does not really know who will win the elections.
d. April likes to make excuses and rationalize her inaction on important matters like voting.
b. From April’s perspective, it makes sense not to waste her valuable time voting.
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Compared to the equilibrium price and quantity sold in a competitive market, a monopolist will charge a ________ price and sell a ________ quantity
A) higher; larger B) lower; larger C) higher; smaller D) lower; smaller E) none of these
Which of the following statements is most correct?
A. The discount rate is the primary policy tool of the FOMC. B. The difference between the target and actual federal funds rate is the dealer's spread. C. The FOMC sets the target federal funds rate range. D. The FOMC sets the federal funds rate.
There can be no shortages or surpluses at the equilibrium price.
a. true b. false
When the Fed alters the types of assets it owns, it is engaging in
A. quantitative easing. B. forward guidance. C. changing the discount rate. D. international balance management.