Rational expectations theory rejects the concept that only unanticipated or surprise policies can influence inflation
a. True
b. False
Indicate whether the statement is true or false
False
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Using public policy to promote health can contribute to growth because:
A. workers who are in good health will be more productive and less likely to miss work days. B. workers who get free health care are more likely to be careless. C. workers who are in good health take more vacation days and are less likely to work. D. it allows the importation of more goods and services.
If the government undertakes expansionary fiscal policy, it:
A. could increase income taxes. B. expects aggregate demand to increase. C. expects aggregate demand to decrease. D. should force people to change their spending patterns.
Events like war shift the long-run aggregate supply curve of an economy to the right
a. True b. False Indicate whether the statement is true or false
Suppose a bank is operating with a leverage ratio of 20 . What is the maximum decrease in the market value of assets before the bank becomes insolvent?