Refer to the three demand curves for coffee. Which of the following would shift the demand for coffee from D1 to D3?
A. an increase in the number of buyers of coffee
B. an expected decrease in the price of coffee in the future
C. a decrease in the price of coffee
D. an increase in income if coffee is a normal good
Answer: B. an expected decrease in the price of coffee in the future
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Which two time periods did the U.S. begin to experience a sharp increase in Current Account deficits?
A) 1981, mid-1990s B) 1971, mid-1990s C) 1961, mid-1990s D) 1971, mid-1980s E) 1985, mid-1990s
Risk diversification refers to the process by which:
A. people organize themselves in a group to collectively absorb the cost of the risk faced by each individual. B. insurance companies change the risk aversion of their clients. C. risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual. D. insurance companies reallocate the likelihood of catastrophes happening.
Which of the following is true? a. At below the natural rate of unemployment, the economy is considered to be beyond full employment. b. At above full employment, the economy is producing more than potential output
c. At above full employment, unemployment would be below its natural rate. d. All of the above are true.
The purpose of expansionary fiscal policy is to
a. increase output b. prevent hyperinflation c. slow the growth of the GDP d. increase the separation between government and private industry