Classical economists perceive that
A. investors' expectations about returns on investment are unstable.
B. large investment swings are responses to small changes in interest rates.
C. the best way to cure unemployment is to start a war.
D. the proper cure for unemployment is active fiscal policy.
B. large investment swings are responses to small changes in interest rates.
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The Taylor Principle states that central banks raise nominal rates by ________ than any rise in expected inflation so that real interest rates ________ when there is a rise in inflation
A) less; rise B) more; fall C) less; fall D) more; rise
Rural families were larger in size, on average, than urban families during the antebellum period. Some argue that the relatively high rate of return on a child born on a farm partly explains why
Children born on farms could be considered investments goods—"goods" used to produce something else. Indicate whether the statement is true or false
During the early 1990s, many workers in military-related industries lost their jobs as the defense budget was reduced. Unemployment of this type is called
What will be an ideal response?
The goals of fiscal policy are (1) _______; (2) ________; and (3) ________.
Fill in the blank(s) with the appropriate word(s).