All of the following are examples of positive statements EXCEPT:
A. Historically higher rates of money growth are associated with higher rates of inflation.
B. Higher interest rates are achieved by slowing the growth of the money supply.
C. Higher interest rates reduce construction activity.
D. Economic output should not be allowed to increase too fast.
Answer: D
You might also like to view...
Which of the following will shift the supply curve for USB flash drives to the right?
A. an increase in the number of sellers B. an increase in consumers' incomes C. an increase in the cost of resources used to manufacture USB flash drives D. an increase in the number of buyers
When the federal funds rate equals the discount rate
A) the supply curve of reserves is vertical. B) the supply curve of reserves is horizontal. C) the demand curve for reserves is vertical. D) the demand curve for reserves is horizontal.
Studies of human decision making reveal several systematic mistakes people make. Which of the following is not an example of one of these mistakes?
a. Tom tells everyone he's sure he can run a 5K in twenty-five minutes, but then tries a couple of times and takes over thirty minutes. b. Kate hears a news report about five people dying from a tornado in Kansas and decides to cancel her plans to visit her aunt there. c. Randi is a strong proponent of raising the minimum wage. She reads a research report on the effects of increasing the minimum wage and begins to doubt her previous thinking. d. Jenny is shopping for a new car and has found that Hondota cars consistently get high quality ratings. Her friend had trouble with her Hondota, so Jenny decides not to purchase a Hondota.
The main avenue by which a temporary change in government purchases in the classical model affects the labor supply is by
A. affecting the value of the stock market. B. affecting workers' wealth. C. increasing business confidence. D. changing the population.