A person weighing uncertainty and risk is judging the ______ or likelihood of a good or bad outcome,
a. Probability
b. Perception
c. Psychological extent
d. Unwillingness
A
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Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because
A) the index is not produced in a timely manner. B) the government manipulates the index so it never predicts a recession. C) the index is not designed for forecasting. D) data on the components of the index are revised.
What would the Nash equilibrium be in this sequential game?
a. Enter, fight b. Enter, Accommodate c. Do not enter, Fight d. Do not enter, Accommodate
When consumption of a good creates positive externalities,
a. the private demand curve shifts rightward b. the private demand curve shifts leftward c. the private demand curve is below the marginal social benefit curve d. the private demand curve is above the marginal social benefit curve e. the equilibrium quantity determined by the free private market is too high
At each value of the domestic interest rate, increases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase B. decrease; increase; decrease C. increase; increase; decrease D. increase; increase; increase