If the probability of losing your job remains ________, a recession would be a good time to purchase a home because the Fed usually ________ interest rates during this time
A) low; lowers
B) low; does not change
C) high; lowers
D) low; raises
E) high; raises
A
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If the marginal net utility of beer is a positive number, the consumer should buy more beer in order to maximize utility.
Answer the following statement true (T) or false (F)
What is the meaning of the statement "correlation does not mean causation"?
What will be an ideal response?
The relationship between money growth rates and inflation between 1982 and 2010 helps explain why, by the 1990s, most economists had
A. adopted the monetarist explanation of inflation. B. adopted a rules-only approach to monetary policy. C. become more convinced of the monetary causes of inflation. D. abandoned monetarism as the primary explanation of inflation.
If the U.S. government decided to pay off the national debt by creating money, what would be the most likely effect?
a. a substantial reduction in real GDP b. a deflationary collapse c. rapid inflation d. an increase in the trade surplus