Which of the following is false?
a. Policy makers generally get the timing of countercyclical macroeconomic policy correct
b. To know the appropriate countercyclical policy to adopt, policy makers would need to know the natural rate of real output.
c. If policy makers underestimate the multiplier, they may overshoot their goal for stimulus policies.
d. All of the above are true
d
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When a bank receives deposits,
A) it must hold the entire amount as reserves in case of withdrawal. B) the Fed requires it to hold only a small percentage as reserves. C) it and it alone decides how much it will hold as reserves. D) its liabilities increase in amount but its assets do not change. E) its assets increase in amount but its liabilities do not change.
What is the transitional gains trap? In New York, in order to be legal a cab driver must have a medallion (i.e., a license) to operate
With respect to New York cab drivers who, if anyone, received transitional gains? What if the medallion program were ended tomorrow. Who would be harmed?
The median voter model assumes that voters have single-peaked preferences
a. True b. False
If a firm shuts down, its
A. fixed costs remain unchanged. B. revenue will fall to zero. C. short-run variable costs will fall to zero. D. All of the responses are correct.