By saving, households
a. are supplying loanable funds
b. are demanding loanable funds
c. are investing
d. are acting as a financial intermediary
e. must find a borrower
A
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Different people may have different tastes, but their tastes do not change over time
a. True b. False
The recession of 2008-2009 was in many ways the worst macroeconomic event in more than half a century
a. True b. False Indicate whether the statement is true or false
Which of the following things can a government do to lower the costs of inflation?
a. sell inflation-indexed bonds and rewrite tax laws so that real rather than nominal gains are taxed b. sell inflation-indexed bonds but not rewrite tax laws so that real rather than nominal gains are taxed c. rewrite tax laws so that real rather than nominal gains are taxed, but not sell inflation-indexed bonds d. neither sell inflation-indexed bonds nor rewrite tax laws so that real rather than nominal gains are taxed
Government intervention may achieve a more optimal outcome than the market mechanism when addressing
A. The supply of new hot dog stands. B. Consumption of cigarettes. C. Inefficient bureaucracy. D. None of the choices are correct.