A consequence of the impact lag is that the Fed
A) may not know the impact of a change in policy.
B) might not be able to correct a mistaken policy soon enough.
C) may not have current information about the state of the economy.
D) may see the impact of a change in policy on inflation, but not economic growth.
B
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Relative to a single price monopolist, a price discriminating monopolist generates:
A. more total surplus. B. the same amount of total surplus, but higher profits. C. less total surplus. D. the same amount of total surplus, but lower profits.
In an open economy, domestic investment equals:
A. domestic saving plus net capital outflows. B. domestic saving. C. net capital inflows. D. domestic saving plus net capital inflows.
Both minivan sales and birth rates are on the rise. The conclusion that minivans cause people to have children is an example of making the mistake of:
A. extrapolation. B. omitted variables. C. correlation without causation. D. reverse causality.
Second-degree price discrimination:
a. is also known as block rate setting b. is imperfect in the eyes of a monopolist c. is regularly practiced by public utilities d. is effective only in the case of services or products which are sold in easily metered units e. all of the above