Economic agents have an incentive to formulate expectations rationally
A) because ignoring information is usually costly.
B) to increase prices.
C) to reduce wages.
D) to ensure that all expectations are realized.
A
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If macaroni and cheese is an inferior good, then a decrease in income will result in
A) an increase in the demand for macaroni and cheese. B) a decrease in the demand for macaroni and cheese. C) an increase in the supply of macaroni and cheese. D) a decrease in the supply of macaroni and cheese.
The demand for loanable funds comes from:
A. investment. B. savings. C. the government printing money. D. households spending on nondurable goods.
Demand-side changes explain everything about stagflation
a. True b. False Indicate whether the statement is true or false
When a domestic currency appreciates, domestic firms that export goods and services will benefit from it
a. True b. False Indicate whether the statement is true or false