An expansionary monetary policy may be less effective than a restrictive monetary policy because
What will be an ideal response?
chartered banks may not be willing to lend their excess reserves to the customers.
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Jake has already bought his hockey gear for the season, but when he is in the sports store, he falls in love with a different hockey stick and buys it even though it means he can't go out to dinner later with his friends which he would have preferred
. This example illustrates the ________ aspect of behavioral economics. A) bounded rationality B) bounded self-interest C) empowerment effect D) bounded will-power
What characteristic of a competitive market has made the "long run pretty short" in the market for iPhone applications?
A) few firms in the market B) ease of entry C) blocked entry D) identical products
A firm's marginal cost equals the:
a. ratio of total cost to total quantity. b. slope of the demand curve under perfect competition. c. slope of the total product curve when the latter is at its maximum. d. change in total cost divided by the change in total output. e. slope of the supply curve.
An expansionary fiscal policy:
a. may include reductions in taxes. b. may include discretionary increases in transfer payments. c. may include increases in government spending. d. All of the answers are correct.