Given fixed exchange rates, what happens to the money supply if the government reduces spending?
a. The change in the money supply depends on the degree of international capital mobility.
b. The money supply does not change.
c. The money supply falls.
d. The money supply rises.
.A
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Which of the following is an example of an automatic stabilizer?
A) Congress increases the tax rate during an expansion. B) Congress authorizes spending increases during a recession. C) More unemployment benefits are paid during a recession. D) Welfare payments decrease during a recession.
The OLS estimator
A) has the multivariate normal asymptotic distribution in large samples. B) is t-distributed. C) has the multivariate normal distribution regardless of the sample size. D) is F-distributed.
Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather more mangoes per hour than Maryann and can also catch more fish per hour than can Maryann. Therefore:
A. Maryann should specialize in the activity for which she has a comparative advantage. B. Ginger should specialize in the activity for which she has an absolute advantage. C. there are no gains to specialization and trade for Maryann. D. there are no gains to specialization and trade for Ginger.
Price discrimination requires ______.
a. different demand curves for different markets b. identical demand curves for different markets c. inelastic customer demand d. a single market for a product