Jose is rational if he
A) does not intentionally make decisions that would leave him worse off.
B) never makes a mistake in his life.
C) only responds to rewards that involve money.
D) always uses a model or mathematical formula to help him make a decision.
A
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If the Treasury finances an expenditure by borrowing from banks with excess reserves, the money supply will
A) remain unchanged. B) rise by an amount equal to the expenditure. C) rise by a multiple of the expenditure. D) fall by a multiple of the expenditure.
The level of money income below which a family is considered poor is called the
a. bottom 20 percent of the income distribution. b. poverty threshold income level. c. guaranteed income level. d. subsistence income level.
If the supply curve for orange juice is estimated to be Q = 40 + 2p, then, at a price of $2, the price elasticity of supply is
A) .01. B) .09. C) 1. D) 11.
A speculative bubble causes
a. current prices to sink artificially low. b. current prices to rise artificially high. c. no current price changes, only possible future changes. d. undervaluing of stock prices.