Which of the following is not an example of signaling?
a. An employer calls the references of a potential employee before hiring him or her.
b. A boyfriend gives his girlfriend a necklace with her favorite gemstone for Valentine's Day.
c. A home flooring company advertises its high Better Business Bureau rating during its television commercials.
d. A company advertises that it makes charitable contributions.
a
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The Fed has control over the long-term real interest rate provided that three variables remain unchanged. These three variables include all of the following except
A) the expected rate of inflation. B) the default premium. C) term structure effects. D) the short-term real interest rate.
If the shut-down rule, p < AVC, is the same in the short run and the long run, explain why the shut-down prices may be different
What will be an ideal response?
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand and aggregate supply fall. d. Neither aggregate demand nor aggregate supply change. e. None of the above.
The conventional tools of monetary policy include:
A. the currency-to-deposit ratio. B. the deposit rate. C. the target federal funds rate range. D. both the deposit rate and the target federal funds rate range.