Demand-pull inflation may be caused by:
a) An increase in costs
b) A reduction in interest rates
c) A reduction in government spending
d) An outward shift in aggregate supply
Answer: b) A reduction in interest rates
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International trade based solely on internal scale economies in both countries is likely to be carried out by
A) monopolists in each country. B) a relatively large number of price competing firms. C) a relatively small number of price competing firms. D) a relatively small number of imperfect competitors. E) a large number of oligopolists in each country.
There are frequently situations where you have information on the conditional distribution of Y given X, but are interested in the conditional distribution of X given Y
Recalling Pr(Y = y = x) = , derive a relationship between Pr(X = x = y) and Pr(Y = y = x). This is called Bayes' theorem. What will be an ideal response?
Suppose a U.S. dollar exchanges for 2 British pounds, then each pound is worth
A. $.25. B. $.50. C. $1. D. $4.
Employers often end up laying off more workers during a recession due to ________
A) higher corporate taxes B) flexible wages C) tight monetary policy D) downwardly rigid wages