Which view of the macro economy suggests that the speed of adjustment for self-correction would be very quick?
A. Monetarism
B. Mainstream economics
C. Supply-side economics
D. Rational expectations theory
D. Rational expectations theory
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A checkable and debitable banking account is
A) a liability to a commercial bank. B) an asset to a commercial bank. C) a liability to the household or firm that has the account. D) an asset for the Federal Reserve System.
Suppose the federal government passes laws that require banks to disclose the advantages of having their customers use automatic bill paying (an example of a RECAP policy). This would be an example of a:
A. shadow price. B. nudge. C. flawed assumption. D. push.
Exhibit 12-3 Income for two persons NameIncome Meredith$124,000 Hillary$ 45,000 In Exhibit 12-3, if the income tax system is currently proportional, we know that:
A. Meredith would probably prefer a progressive income tax system while Hillary would probably prefer a regressive income tax system. B. Meredith and Hillary would both probably prefer a regressive income tax system. C. Meredith and Hillary would both probably prefer a progressive income tax system. D. Meredith would probably prefer a regressive income tax system while Hillary would probably prefer a progressive income tax system.
Ceteris paribus, the price level will decrease if the aggregate
A. Supply curve shifts to the left. B. Supply and demand curves both shift to the right. C. Demand curve shifts to the left. D. Demand curve shifts to the right.