Central banks can use monetary policy to
What will be an ideal response?
make it easier for people and businesses to borrow.
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The income elasticity of demand for store brands of soda (that is, non-name brands) is negative. What does this fact indicate about consumers' perceptions about the store brands?
What will be an ideal response?
The combination of a successful wage push by workers and the government's commitment to high employment leads to
A) demand-pull inflation. B) supply-side inflation. C) supply-shock inflation. D) cost-push inflation.
Which of the following is NOT a result of the ability of investors to hedge?
A) increased access to funds by firms and households B) investors are more willing to invest C) increased risk aversion D) slower economic growth
In a one-period economy, all of the following are equivalent expressions of the budget constraint except
A) C = w(NS + l) + ? - T. B) C = wNS + ? - T. C) C = w(h - l) + ? - T. D) C = wl = wh + ? - T.