"Animal spirits" refers to
A) the stubborn refusal of many economic decision-makers to use rational expectations.
B) movements in investment that cannot be explained by changes in current variables.
C) the often-observed Fed refusal to cooperate with the government in setting its monetary policy.
D) the impact of tax-evasion on the budget deficit.
E) an exotic alcoholic drink favored by Wall Street traders.
B
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Indicate whether the statement is true or false
Which of the following is most likely to be a monopolistically competitive firm?
A) smart phone producer B) cell phone service provider C) college textbook publisher D) computer software maker
For a perfectly competitive market in which firms face an identical constant marginal costs, the amount of consumer surplus increases if
A) market demand decreases. B) market demand increases. C) marginal cost increases. D) none of the above: insufficient information to answer.
Suppose the balance on the current account is +$100 billion and the balance on the capital account is -$1 billion. The balance on the financial account is:
A. +$101 billion. B. -$100 billion. C. -$99 billion. D. -$101 billion.