The variables in the index of leading indicators are included in the index because
a. they are good indicators of the current rate of inflation.
b. they generally lag behind turns in the business cycle.
c. of their tendency to lead (or predict) turns in the business cycle.
d. they are good indicators of the current state of the economy.
C
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If quantity demanded increases at all possible prices, demand has
A) increased. B) decreased C) remained the same; only quantity demanded has changed. D) remained the same; however, the curve has become more stee
Alexis de Tocqueville observed in his Democracy in America: "There is no country in which everything can be provided for by the laws, or in which political institutions can prove a substitute for
A) common sense and morality." B) economic development." C) police and prisons." D) supply and demand." E) the private pursuit of private interests."
The specific factors model was developed by
A) Paul Samuelson and Ronald Jones. B) Adam Smith and David Ricardo. C) Richard Nixon and Robert Kennedy. D) C.B. deMille and Gordon Willis. E) Bill Clinton and Monica Lewinsky.
Money is created through the banking processes of taking deposits and making loans if
A) the banks require individual depositors to hold "reserves." B) the banks require individual borrowers to hold "reserves." C) paper deposit receipts are not acceptable means of payment. D) paper deposit receipts are accepted as a means of payment.