According to the theory of rational expectations, errors in predicting inflation will
a. be biased upward more often than not.
b. be purely random.
c. tend to be biased downward when inflation is rising, and tend to be biased upward when inflation is falling.
d. tend to be biased upward when inflation is rising, and tend to be biased downward when inflation is falling.
B
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Affirmative action laws require employers to hire specified numbers of minorities.
Answer the following statement true (T) or false (F)
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450. If you do not use the frequent-flyer coupon to fly to Miami, should you go to Miami?
A. Yes, your benefit is equal to your cost. B. Yes, your benefit is more than your cost. C. No, your benefit is less than your cost. D. No, because there are no benefits in the trip.
The South's economy was based on production of
A. iron, steel and textiles. B. corn, wheat and soybeans. C. tobacco, cotton and rice. D. iron, wheat and cotton.
The kinked demand curve exists because consumers make erratic decisions
Indicate whether the statement is true or false