The value of a price index in the base year will always be zero
a. True
b. False
Indicate whether the statement is true or false
False
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Guaranteed benefits under government programs such as Social Security or Medicare are called
A) controllable expenditures. B) entitlements. C) automatic stabilizers. D) discretionary spending.
What is the Customer Acquisition Cost?
a. Total cost of customers b. Average cost per customer c. The marginal cost of acquiring another customer d. All of the above
Why is monetary policy more effective in an open economy than in a closed economy?
a. Trade deficits affect exchange rates, which can offset adverse interest rate effects. b. Borrowers can choose to use foreign capital, so that interest rate effects are stronger than expected. c. Interest rate changes affect exchange rates, so that capital flows reinforce the effect of monetary policy. d. Banks can choose to lend to foreigners, so that interest rate effects are essentially nullified.
Exhibit 6A-1 Budget line
?
?As shown in Exhibit 6A-1, a leftward shift in the budget line from CD to AB would result from:
A. ?a price reduction in good X. B. ?a price reduction in good Y. C. ?a decrease in consumer income. D. ?an increase in consumer income.