A consumer maximizes utility at a point where multiple indifference curves intersect the budget line
a. True
b. False
Indicate whether the statement is true or false
False
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_____ is the reward savers earn for deferring consumption
a. Dividend b. Wage c. Rent d. Profit e. Interest
When the monetary authorities expand the supply of money rapidly,
a. its purchasing power tends to increase. b. holding money is a poor method of storing value. c. the long-run sustainable real growth rate of the economy will tend to increase. d. the prices of goods and services will generally decline.
Explain why fiscal policy actions typically work with a lag
If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any inflation rate output is higher in the short run than before. b. left, so that at any inflation rate output is higher in the short run than before. c. right, so that at any inflation rate output is lower in the short run than before. d. left, so that at any inflation rate output is lower in the short run than before.