When the average price level falls, interest rates fall, which increases the consumption of certain goods and services. This sequence of events describes the _______ _______ _______.
Fill in the blank(s) with the appropriate word(s).
interest; rate; effect
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When government outlays exceed tax revenues, the situation is called a budget
A) surplus. B) deficit. C) with a negative balance. D) with no balance. E) debt.
The tools at the disposal of the Fed for changing the quantity of money do NOT include
A) open market operations. B) changing the required reserve ratio. C) changing discount rates. D) increasing the number of commercial banks.
A proponent of supply-side economics would advocate
a. reducing income taxes on saving. b. reducing tax credits for research and development. c. eliminating the depreciation allowance. d. increasing the corporate income tax.
Suppose Vinnie is looking for a month-long vacation rental in San Diego. The first vacation rental Vinnie finds costs $800 per month. If he looks for another vacation rental, there's a 75 percent chance he'll find another one for $800 per month and a 25 percent chance he'll find one for $600 per month. Other than price, all of the vacation rentals are identical. Vinnie's marginal cost of searching for an additional vacation rental is $45. For Vinnie, the expected value of searching for another vacation rental is:
A. $200. B. $5. C. $45. D. $50.