Milton Friedman and Edmund Phelps ______ of the Phillips curve.
a. questioned the short-term validity
b. questioned the long-term validity
c. proved the basic principle
d. created the general concept
b. questioned the long-term validity
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Private property rights mean that:
A) individuals cannot be excluded from the consumption of goods and services regardless of whether they pay for them. B) individuals have a right to elect their representatives in the government. C) individuals can own businesses and assets, and their ownership is secure. D) the government does not own any resource used in production in an economy.
The Fisher effect ________
A) comes from combining the Fisher equation and the classical dichotomy B) predicts that in the long run nominal rates will rise with increases in expected inflation C) shows that in high inflation we typically see high nominal interest rates D) all of the above E) none of the above
According to Habakkuk (1962), the high price of western lands before the Homestead Act (1862) kept workmen in the eastern manufacturing cities and thus slowed down the rate of adoption of labor-saving technology
Indicate whether the statement is true or false
The derived demand curve for loans slopes downward because as interest rates
a. fall, future income becomes less valuable. b. fall, investors develop pessimistic expectations. c. fall, future income becomes more valuable. d. rise, investors become pessimistic.