Which of the following is not an automatic stabilizer?
a. Forward-looking behavior
b. Interest rates
c. Imports
d. Transfer payments
e. Consumption spending
E
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Supply-side economists
a. focus almost exclusively on the supply-side effects of changes in the money supply. b. did not devote much attention to the supply-side effects of changes in income tax rates since the marginal income tax rate is very low and pertained only to the relatively wealthy. c. argued that cuts in marginal tax rates had very favorable supply-side effects. d. argue that government spending is at least as important as tax rates.
In hindsight, mortgage-backed securities implied very limited risk because the underlying mortgages were spread across different geographic areas.
Answer the following statement true (T) or false (F)
Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?
A) a drought that sharply reduces barley output B) an increase in consumer income C) a decrease in consumer income D) unusually good weather that results in a bumper crop of barley
Suppose that the nominal rate of interest is holding steady at 8 percent even as the anticipated rate of inflation rises. What is happening to the real rate of interest?
A) It is unchanged. B) It is increasing. C) It is decreasing. D) It equals the nominal interest rate.