Expenditure and tax multipliers are likely to be large
A) if the economy is experiencing deflation.
B) when real interest rates rise rapidly.
C) during severe recessions.
D) if the economy has negative cyclical unemployment.
C
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In the 1980s, the USA and the USSR negotiated a reduction in nuclear arms; this is an example of a
A) non-cooperative equilibrium. B) cooperative outcome that may not be a Nash equilibrium. C) cooperative outcome that was a Nash equilibrium. D) sub-game perfect equilibrium.
The assumption that labor markets clear makes it very easy for the classical model to explain expansions
a. True b. False
What is true about dominant strategies in the game in Scenario 13.10?
A) "Use more caffeine" and "have a sweepstakes" are dominant strategies. B) "Use more caffeine" and "create a diet soda" are dominant strategies. C) "Make animal-shaped bottles" and "have a sweepstakes" are dominant strategies. D) "Make animal-shaped bottles" and "create a diet soda" are dominant strategies. E) There are no dominant strategies.
A higher interest rate makes _____ more attractive. Therefore the quantity of loanable funds supplied increases
Fill in the blank(s) with correct word