Which of the following events is the most likely to create stagflation?
A. An increase in the money supply.
B. A reduction in the amount spent on national defense.
C. A doubling of oil prices.
D. A decrease in investment spending.
Answer: C
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According to real business cycle theory, business cycles
a. can be eliminated with appropriate monetary and fiscal policy. b. are natural and efficient reactions to changes in productivity. c. do not occur. d. occur infrequently. e. none of the above.
The adverse selection problem in health care occurs because people who are healthier are less likely to buy health insurance because they are less likely to need it.
Answer the following statement true (T) or false (F)
________ involve the exchange of currency the second day after the date on which the two foreign-exchange traders agree to the transaction.
A) Spot transactions B) Outright forward transactions C) FX swaps D) Reverse transactions
Of the following reasons for unemployment, which will increase most because of a recession?
A. New job market entrants. B. Workers that have reentered into the job market. C. Workers that have lost their jobs. D. Workers that have left their jobs.