Which of the following statements is not correct?
a. Based on studies of human decision making, most people value fairness.
b. Based on studies of human decision making, some people's preference are inconsistent over time.
c. Government intervention is the best remedy for the problems caused by asymmetric information.
d. Advertising can be an example of a company signaling the quality of its products.
c
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A negative relationship exists between the variable measured along the y-axis and the variable measured along the x-axis if
A) a reduction in the variable measured along the x-axis is associated with a reduction in the variable measured along the y-axis. B) an increase in the variable measured along the x-axis is associated with an increase in the variable measured along the y-axis. C) the variable measured along the x-axis and the variable measured along the y-axis move in the opposite direction. D) the variable measured along the x-axis and the variable measured along the y-axis move in the same direction.
What was the balance of trade in 2017?
a. -$808 billion
b. -$552 billion
c. -$449 billion
d. $0 billion
If the Fed's policy reaction function equals r = .02 + ?, where r is the real interest rate and ? is the inflation rate. When the inflation rate is at the current target of 2 percent, then the real interest rate will be set at:
A. zero. B. 6 percent. C. 2 percent. D. 4 percent.
Which of the following is not true about the Federal Reserve banks?
A. They serve as bankers' banks B. They are privately owned but government-controlled C. Unlike other banks, they are not motivated by profits D. They compete with commercial banks in their basic functions