If buyers expect prices to ________ faster than the interest rate, it makes sense to _____ as much money as possible to _____ now in order to ______ in the future
a. Increase; borrow; buy; sell
b. increase; save; buy; sell
c. decrease; save; buy; sell
d. decrease; borrow; sell; buy
a
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Generally, official poverty measures ignore
A. the impact of taxes. B. the value of in-kind transfers. C. the value of medical expenses that are paid by the government. D. all of these answer options are correct.
Suppose Ferd truthfully tells the car dealer the maximum amount he's willing to pay for a Ford Mustang: $20,000 . The dealer says, "You're in luck; we have one on the lot for $20,000." Which of the following statements is true?
a. Ferd will not buy the car. b. The car is not worth $20,000. c. Ferd gets $20,000 in consumer surplus. d. Ferd gets no consumer surplus. e. The dealer earns $20,000 in consumer surplus.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the reserves account and monetary base in the context of the Three-Sector-Model? a. The reserves account becomes more negative (less positive) and monetary base falls
b. The reserves account becomes more negative (less positive) and monetary base falls. c. The reserves account and monetary base remain the same. d. The reserves account becomes more negative (less positive) and monetary base rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
Figure 11-2
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Which graph in Figure 11-2 best reflects a Keynesian’s view of the short-run impact of an increase in the personal income tax rate?
A. 1 B. 2 C. 3 D. 4