The pure rate of interest in economic models is best approximated by the:
A. 1-month Treasury bills
B. Prime interest rate
C. Federal funds rate
D. 20-year Treasury bond rate
D. 20-year Treasury bond rate
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Majority of international migrants move to:
A. The U.S. and Canada B. Western Europe C. Countries relatively close to their home countries D. Japan and Australia
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Economists assume that rational people
A) never use all available information as they act to achieve their goals. B) respond to economic incentives. C) undertake activities that benefit others and hurt themselves. D) only weigh the benefits and costs of the most desirable alternative actions.
According to the Bureau of Labor Statistics' survey, which category represents the largest expense for the typical urban family?
a. Housing. b. Food and beverages. c. Transportation. d. Medical care.