Which kind of lag is important for monetary policy? Which kind of lag is important for fiscal policy?
Both are prone to lags, but the lags are different for the two types of policy. Monetary policy can be enacted quickly, but because it works through changes in interest rates and investment, it may take a long time to have an impact. Fiscal policy works with a long lag due to the political process that must be followed, including congressional committees and the requirement of Presidential approval.
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Sadie works at a factory for $15 an hour and typically works 40 hours a week. Sadie gets a pay raise and now earns $20 an hour. She decides to work 45 hours a week at $20 an hour. Her response:
A. tells us the price effect outweighed the income effect of her pay raise. B. implies her labor-supply curve is upward sloping. C. is typically what is observed. D. All of these statements are true.
Steve holds 100 shares of a company that currently trade at $10 . There is a 50 percent probability of the market price increasing to $15 within the next quarter. If Steve waits for the market price of shares to increase before selling them off, he would be considered risk averse
Indicate whether the statement is true or false
A common theme in the discussions of the airline, soft drink, doughnut, and express delivery industries is that oligopolistic firms tend to compete:
A) strictly on the basis of price and nothing else. B) strictly on the basis of cost minimization. C) primarily on the basis of product differentiation and price. D) primarily by erecting barriers into the market.
When the SEC requires companies to publicly release financial statements, which of the following remedies of conflicts of interest does this fall under?
A) leave it to the market B) regulate for transparency C) supervisory oversight D) separation of functions