The natural rate hypothesis argues that the economy will
self-correct to the natural rate of unemployment
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There are ________ between the risks individuals expose one another to and the risks corporations expose their customers to
A) major differences B) no fundamental differences C) only financial differences D) significant, but relatively minor differences
You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. The CPI over that year rises from 180 to 200. What is the real interest rate you are paying?
A) 15% B) 5% C) -1.1% D) -6.1%
Whatever serves as a medium of exchange is: a. money
b. money, as long as it is also the best such medium of exchange available. c. money, as long as it is not also a commodity. d. money, as long as it is not also legal tender. e. not money, unless it continues to be backed by its issuing institution.
Rational expectations theorists feel that the economy is ______ after macroeconomic shocks occur.
a. stable b. slower c. inoperative d. strongest