Economists assume that rational people do all of the following except
A) undertake activities that benefit others and hurt themselves.
B) respond to economic incentives.
C) use all available information as they act to achieve their goals.
D) weigh the benefits and costs of all possible alternative actions.
A
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Suppose that for a curve, as the variable measured on the x-axis increases, the variable measured on the y-axis decreases. The curve has a ________ slope
A) tangent B) positive C) negative D) hypothetical
The deflation of the 1930s impacted the U.S. economy because it led some consumers to ________ and because it ________
A) demand higher wages in anticipation of prices eventually rising again; increased manufacturing since firms could afford to hire more labor B) increase purchases to take advantage of the falling prices; increased the burden on lenders C) postpone purchases while they waited for prices to fall even lower; increased the burden on borrowers D) borrow more money since money was now cheap; reduced the amount of money consumers would have to pay back on their outstanding loans
If the federal government where to raise the income tax rates, would this have any impact on a state's cost of borrowing funds? Explain
What will be an ideal response?
How do targeted asset purchases alter the outlook for the economy and inflation?
What will be an ideal response?