If government spending rises but the central bank changes the money supply to prevent income from changing, then
a. both consumption and investment will remain unchanged.
b. consumption rises and investment falls.
c. investment falls but consumption rises.
d. both consumption and investment rises.
C
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The principal-agent problem would not occur if ________ of a firm had complete information about actions of the ________
A) owners; customers B) owners; managers C) managers; customers D) managers; owners
Which statement is true?
A. Today more workers in the U.S. are members of labor unions than any time in our history. B. Today labor unions are weaker than any time in the last 100 years. C. No major labor union has called a strike since the 1940s. D. Labor unions are relatively strong in the public (government) sector.
Why would a macroeconomist look at the seasonally adjusted unemployment rate?
a. to observe underlying trends that seasonal unemployment might obscure b. to understand the effect of seasonal unemployment on other types of unemployment c. to observe how weather affects the unemployment rate in different years d. to prove that seasonal unemployment is negligible in terms of affecting the unemployment rate
Which one of the following is presently a major deterrent to bank panics in the United States?
A. The legal reserve requirement. B. The fractional reserve system. C. The gold standard. D. Deposit insurance.