Economists
a. agree that the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high.
b. agree that the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high.
c. disagree about whether the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be smaller if inflation expectations remain high.
d. disagree about whether the costs of reducing inflation to zero are worth the benefits. The increase in unemployment from reducing inflation will be larger if inflation expectations remain high.
d
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The federal budget process begins when federal agencies submit their budget requests to the:
a. Treasury Department. b. Council of Economic Advisors (CEA). c. Office of Management and Budget (OMB). d. Congressional Budget Office (CBO).
Other things the same, a decrease in the U.S. interest rate
a. induces firms to invest more. b. shifts money demand to the left. c. makes the U.S. dollar appreciate. d. increases the opportunity cost of holding dollars.
Given the following information about AAA bank:
What is the reserve ratio?
A. 50 percent B. 40 percent C. 20 percent D. 10 percent
The point of tangency between an isocost line and an isoquant is necessarily
A. the profit-maximizing combination of inputs that should be hired to produce that output level. B. the least costly combination of inputs that can be hired to produce the output level. C. the minimum amount of output that can be attained for that level of expenditure. D. both the profit-maximizing and least costly combination of inputs that can be used to produce the output level.