The effects of a decline in the value of financial assets, such as stocks, on consumption and the economy might be offset by
a. increasing government spending.
b. decreasing the money supply.
c. increasing taxes.
d. undertaking no policy action.
a
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From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the marginal
A. benefit of more insurance coverage is greater than the total benefit. B. cost of more insurance coverage is negative. C. cost of more insurance coverage is equal to the payment for the extra coverage. D. cost of more insurance coverage is less than the marginal benefit.
Which of the following is included in U.S. GDP?
i. the rental value of homes owned by U.S. citizens ii. the production of Suburban SUVs by GM in its plant in Mexico iii. tickets sold by U2 for concerts held in the United States A) i only B) ii only C) ii and iii D) i, ii and iii E) i and iii
The term “recession” refers to a
a. period of decline in real GDP over two consecutive quarters. b. fall in the general level of real wages over two consecutive quarters. c. fall in the CPI over two consecutive quarters. d. fall in the rate of increase of real per capita GDP.
If a female supervisor is discriminated against by one of her workers who refuses to cooperate, she may earn lower wages
a. True b. False Indicate whether the statement is true or false