If Doug has just watched a television show in which the main character is killed in an airplane crash, then the availability heuristic predicts that he will:
A. overestimate the dangers of air travel.
B. more accurately assess the pros and cons of air travel.
C. never watch that television show again.
D. underestimate the dangers of air travel.
Answer: A
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If aggregate demand grows only slightly faster than potential GDP, then the economy will ________
A) experience economic growth with high inflation B) experience recession C) experience economic growth with low inflation D) be at a business-cycle peak
An asset-price bubble is caused by:
A. people buying assets because they believed prices would keep going up and they'd be able to sell for a profit. B. fads that make owning a certain asset fashionable. C. severe inflation within a short period of time. D. the increase in the value of durable goods when the economy is experiencing low inflation.
In a VECM,
A) past values of Yt - ? Xt help to predict future values of ?Yt and/or ?Xt. B) errors are corrected for serial correlation using the Cochrane-Orcutt method. C) current values of Yt - ? Xt help to predict future values of ?Yt and/or ?Xt. D) VAR techniques, such as information criteria, no longer apply.
Under the Bretton Woods system, international debts were settled in:
a. gold. b. U.S. dollars. c. British pounds. d. silver. e. German marks.