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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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
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.