Today, people changed their expectations about the future. This change
a. can cause a movement along a demand curve.
b. can affect future demand but not today's demand.
c. can affect today's demand.
d. cannot affect either today's demand or future demand.
c
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An insured person's incentive to behave in ways that raise the probability of a claim is known as:
a. a moral hazard. b. the lemons problem. c. the problem of adverse selection. d. the problem of advantageous selection.
Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,
a. her accounting profit will rise. b. her accounting profit will fall. c. her explicit costs will rise. d. her economic profit from textbooks will fall. e. her economic profit from textbooks will rise.
When the federal funds rate is below the target rate, the Fed will _____ bonds. This action will _____ the money supply
Fill in the blank(s) with correct word
Suppose the economy is operating at its full-employment-noninflationary GDP and the MPC is .75. The federal government now finds that it must increase spending on military goods by $21 billion in response to deterioration in the international political
situation. To sustain full- employment-noninflationary GDP, government must: A. reduce taxes by $28 billion. B. reduce transfer payments by $21 billion. C. increase taxes by $21 billion. D. increase taxes by $28 billion.