When toilet paper sales increase, quarterly economic growth tends to rise. This is an example of:
A. two variables that are negatively correlated.
B. the presence of ceteris paribus.
C. correlation without causation.
D. causation with no correlation.
C. correlation without causation.
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Which of the following is NOT true about the aggregate demand curve?
A) The production possibilities curve determines the slope of the aggregate demand curve. B) The aggregate demand curve shows total planned real expenditures at different price levels. C) Changes in the economic conditions in other countries will lead to a shift of the aggregate demand curve. D) The aggregate demand curve considers the entire circular flow of income.
At the point where the disposable income line intersects the consumption function, saving:
a. equals consumption. b. equals disposable income. c. is less than zero. d. is equal to zero.
You are an American resident but have invested in a German bond (paying face value) that matures in two years, pays a 5 percent interest rate and is denominated in euros. What could cause your rate of return to fall below 5 percent even though the bond pays off at maturity?
What will be an ideal response?
A departure from the New Zealand model, in which the central bank implements an inflation target set by the government, the ECB operates according to the German model, in which the central bank:
A) has ceded power to the administration. B) has authority to set and implement the inflation target. C) functions only in a technical sense. D) is replaced by a currency board.