This school of thought argues that because people anticipate the consequences of announced government policy and incorporate these anticipated consequences into their present decision making, people end up undermining the government policy. What is it?
a. Neo-Keynesian.
b. Keynesian.
c. Monetarist.
d. Supply-side.
e. Rational expectations.
e
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How can one "beat the market"?
What will be an ideal response?
If the interest rates in an economy are close to zero, _____
a. there will be an excess demand for loanable funds b. the economy will be likely to fall into a liquidity trap c. expansionary monetary policy will be effective, but not contractionary monetary policy d. contractionary monetary policy will be effective, but not expansionary monetary policy
When the government redistributes income from the wealthy to the poor,
a. efficiency is improved, but equality is not. b. equality is improved, but efficiency is not. c. both efficiency and equality are improved. d. neither efficiency nor equality are improved.
Indifference curves show the ________ of combinations of two products.
A. marginal utility B. secular utility C. total utility D. individual utility