Which of the following is the most realistic example concerning economic policy?

a. An economist accurately predicts how unemployment rates will change next year.
b. An economist knows if the money supply increases 3 percent, interest rates will decrease 3 percent.
c. An economist predicts the exact effect an expansionary policy will have.
d. An economist believes interest rates will increase next year but is not absolutely sure.


d. An economist believes interest rates will increase next year but is not absolutely sure.

Economics

You might also like to view...

Price-cap regulation not only motivates cost control, it can also motivate socially desirable pricing

Indicate whether the statement is true or false

Economics

A market dominated by a single seller:

a. start-up costs b. merger c. patent d. monopoly e. deregulation

Economics

An investment's average expected rate of return is the:

A. probability-weighted average of the investment's possible future rates of return. B. simple average of the investment's possible future rates of return. C. probability-weighted average of all past rates of return. D. simple average of the rates of return of all similar investments.

Economics

Explain the output and factor substitution effects of an increase in the price of capital on theDemand for labor by a firm that produces output using both capital and labor

What will be an ideal response?

Economics