What is the main cause of high inflation rates in middle and low income countries?
a. Citizens save most of their income lowering aggregate demand.
b. Citizens spend most of their income pushing up prices.
c. The government pays for its budget deficits by printing money.
d. The government pays for its budget surplus by printing money.
c. The government pays for its budget deficits by printing money.
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When people decorate the exteriors of their homes with colored lights, they create ________ for the motorists who pass by
A) an external benefit B) a competitive good C) a public good D) an excludable good
In the consumption function C = a + c(Y - T), the "marginal propensity to consume" appears as
A) a. B) c. C) cY. D) -cT. E) c(Y - T).
Coupons represent a form of price discrimination because they offer a low-cost way for firms to
A) identify customers with apparently more elastic demand and offer them a lower price. B) retain loyal customers who are not price sensitive. C) offer discounts to consumers who buy larger quantities. D) perfectly price discriminate.
Screening is an action taken by an uninformed party to induce an informed party to reveal information
a. True b. False Indicate whether the statement is true or false