The "life cycle" and "permanent income" theories of consumption share which of the following features?
A) Consumption spending depends on income, rather than wealth.
B) Consumption spending should fluctuate widely from year to year.
C) Consumers look ahead to the future in making current spending decisions.
D) all of the above
E) none of the above
C
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Suppose the economy is in a long-run equilibrium when a positive demand shock occurs. On the graphs above, show what happens to bring the economy back to long-run equilibrium, assuming that there is no policy response
In words, describe how the graph would be different, if policy makers did intervene.
The expected benefits of central bank independence include avoidance of ________
A) Ben Bernanke B) public scrutiny of central bank policies C) the time-inconsistency problem D) serious policy errors
FDIC deposit insurance is ________ per account
A) $100,000 B) $150,000 C) $200,000 D) $250,000
Which of the following factors has contributed to rising health care prices in the United States?
A. The supply of physicians per 100,000 people has decreased since 1975. B. Productivity growth in the health care industry has been negative in recent years. C. Improvements in medical technology have significantly increased the number of patients that can be treated each year. D. The supply of physicians per 100,000 people has risen since 1975, but not as fast as the increase in the demand for physicians' services.