Present bias occurs because there is a mismatch in the timing of benefits and costs.
Answer the following statement true (T) or false (F)
True
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An inferior good is a good for which the quantity demanded increases as the price decreases, holding everything else constant
Indicate whether the statement is true or false
An increase in the required reserve ratio will lead to a/an:
a. increase in the monetary base. b. increase in the money multiplier. c. increase in the money supply. d. both b and c. e. both a and c.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each. Based on this
information we can conclude that Harry's production of large pepperoni pizzas: A. increased both nominal and real GDP from last year. B. increased nominal GDP from last year, but real GDP was unaffected. C. increased real GDP from last year, but nominal GDP was unaffected. D. did not change either nominal or real GDP from last year.