Suppose there is a fiscal contraction. Which of the following is a complete list of the variables that must decrease?
A) consumption
B) consumption and investment
C) consumption and output
D) consumption, output and the interest rate
E) consumption, output and investment
C
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The tendency of many economic variables to move together in a predictable way over the business cycle is called
A) recurrence. B) persistence. C) comovement. D) inflation.
Financial deregulation and innovation in the United States has greatly ________ the variety of financial market instruments savers can choose from and has also ________ the dominance of banks among the financial intermediaries
A) reduced, increased B) reduced, reduced C) increased, increased D) increased, reduced
The Navigation Acts
a. placed tariffs on the import of British goods by the colonies. b. provided for the free trade of colonial goods, including tobacco, indigo and sugar. c. required all colonial trade to be carried on English vessels. d. were abolished in 1700.
Explain why greater equality is inevitably gained at the expense of efficiency