The Federal Reserve often begins to tighten monetary policy after a trough in the business cycle because of
A) the impact lag.
B) the recognition lag.
C) bureaucratic indecision.
D) the time necessary to get Congress to act.
B
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Goods that are very useful and highly desired are likely to be relatively expensive, no matter how scarce or abundant they are
Indicate whether the statement is true or false
The trade-to-GDP ratio for a nation that had $600 million in exports, $400 million in imports, and GDP of $2,000 million would be
A) 0.1. B) 0.2. C) 0.5. D) -0.1.
The ________ is a rule of thumb that estimates the frequency of an event by the ease with which it is possible to summon examples from memory.
A. availability heuristic B. adaptive rationality standard C. Weber-Fechner law D. representative heuristic
Refer to the data provided in Table 17.4 below to answer the following question(s). The table shows the relationship between income and utility for Celeste.Table 17.4 IncomeTotal Utility $0 0 $40,00050 $80,00090$120,000120$160,000140Refer to Table 17.4. Suppose Celeste has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Celeste does not become disabled, she will earn her usual salary of $120,000. Celeste has the opportunity to purchase disability insurance for $40,000 which will pay her her full salary in the event she becomes disabled. Celeste's utility with the policy is
A. 90 and her expected utility without the policy is 80. B. 120 and her expected utility without the policy is 80. C. 90 and her expected utility without the policy is 90. D. 40 and her expected utility without the policy is 90.