An increase in unemployment insurance and other transfer payments may
A) increase the natural rate of unemployment.
B) increase the number of discouraged workers.
C) reduce the rate of inflation at every level of unemployment.
D) lead to less unanticipated inflation.
A
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Referring to Table 12.2, if the nominal interest rate is 3.5 percent and there is no inflation, which investments will be undertaken?
A) B, D, E B) D, E C) B, C, D, E D) C, E
Which of the following is the velocity of money?
a. How quickly the average worker gets paid after his or her work is done. b. The average speed of ATM machines. c. The average number of times per year that a given dollar of the money supply is spent. d. None of the above.
When actual investment exceeds intended investment, national income will grow
Indicate whether the statement is true or false
You are in the market for a used 2016 Toyota Corolla. You know that half of the 2016 Corollas are lemons and half are peaches. If you could be assured that the Corolla you were buying was a peach, you would be willing to pay up to $12,000. On the other hand, you would only be willing to pay $4,000 for a lemon. You have no ability to discern whether any particular Corolla is a lemon or a peach. Sellers of Corollas, on the other hand, are likely to know whether their particular car is a lemon or a peach. Suppose sellers of lemons will sell their cars for $3,000 or more and peach sellers will be willing to sell their cars for $9,000 or more. If you are risk neutral, you are willing to offer ________ and ________ are willing to sell you their car.
A. $4,000 for a car of unknown quality; lemon owners only B. $6,000 for a car of unknown quality; lemon owners only C. $8,000 for a car of unknown quality; lemon owners only D. $9,000 for a car of unknown quality; both lemon and peach owners