The lag between the time at which a policy is put in place and the time that policy affects the economy is called
A) the recognition lag.
B) the impact lag.
C) the implementation lag.
D) the theoretical lag.
Ans: B) the impact lag.
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The tendency for private saving to increase in response to growing government deficits is known as the
A) crowding out effect. B) money illusion effect. C) Keynes effect. D) Ricardo-Barro effect.
The purpose of making assumptions in economic model building is to
A) force the model to yield the correct answer. B) minimize the amount of work an economist must do. C) simplify the model while keeping important details. D) express the relationship mathematically.
A(n) _____ arises when people purchasing a public good have an incentive to let others pay for it and then take advantage of those purchases made by others
a. free rider problem b. monopsony c. monopoly d. adverse selection
Unexpected lower interest rates redistribute income from
A. Borrowers to lenders. B. Businesses to banks. C. Lenders to borrowers. D. Spenders to savers.