The classical school of thought believed that ______.
a. Say’s law was incorrect
b. Keynes’s macroeconomic model was correct
c. an economy can experience prolonged unemployment
d. wages and prices adjust quickly to changes in supply and demand
d. wages and prices adjust quickly to changes in supply and demand
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According to the interest parity condition, if the domestic interest rate is 12 percent and the foreign interest rate is 10 percent, then the expected ________ of the foreign currency must be ________ percent
A) appreciation; 4 B) appreciation; 2 C) depreciation; 2 D) depreciation; 4
The longer the time period considered, the price elasticity of demand tends to: a. decrease
b. remain constant. c. increase. d. converge to zero.
Congressional studies report that Medicare payments fall 11 percent below the cost of treating patients while private insurance patients pay 29 percent more than cost. This phenomenon may be attributable to cost shifting or price discrimination depending on:
a. the provider's payer mix. b. the size of the hospital. c. whether the hospital is organized as for profit or not-for-profit. d. whether the patient has Medigap insurance. e. the patient's income.
A quota brings a more serious misallocation of resources than a tariff.
Answer the following statement true (T) or false (F)