According to the life-cycle hypothesis ________
A) households consume on the basis of their current income and liabilities
B) household consumption as a percentage of income varies over one's lifetime
C) current income is a function of future income
D) cycling to work everyday allows one to live a longer life
B
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The finance of government spending through a Treasury sale of bonds which are then purchased by the Fed
A) causes both reserves and the monetary base to rise. B) causes both reserves and the monetary base to decline. C) causes reserves to rise, but the monetary base to decline. D) has no net effect on the monetary base.
Since the government controls the maximum price pipelines can charge for transportation of natural gas, the pipelines going to the same destination usually compete by discounting rates below the legal maximum
Indicate whether the statement is true or false
Developing countries employ the inflation tax because it provides a:
A. long-run solution to both their economic and political problems. B. short-run solution that helps keep the government afloat, even if only temporarily. C. a solution to their inflation problem. D. long-run solution to their budget problems even if it is politically unpopular.
If you hear a person saying "I lost my job at the GM plant because car manufacturing is slow due to a slowdown in the economy," you should conclude that this person is ________ unemployed.
A. structurally B. cyclically C. frictionally D. seasonally