In terms of price indexes, what is a COLA?
a. A measure of the quality of living
b. A consumer price adjustment
c. An increase in wages designed to match consumer price increases
d. An estimate of gross domestic product
e. A measure of producer surplus
c
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Expansionary monetary policy will have what effect on the components of aggregate demand?
A) Consumption, investment, and net exports will rise. B) Consumption will rise, but investment and net exports will fall. C) Consumption and investment will rise, but net exports will fall. D) Consumption will fall, but investment and net exports will rise.
The constitutional right to enact usury laws in the United States
a. results in excessive interest paid by borrowers b. represents a price floor for borrowed money c. reinforces our belief in the market system d. still belongs to state governments e. does not exist
A consumer spends less time searching for a good when her reservation price is:
A. fixed. B. increased. C. reduced. D. None of the answers are correct.
It is difficult for depositors to know the true health of banks because:
A. regulations prohibit banks making their financial statements publicly available. B. banking is competitive and financial records of banks are not divulged to prevent competitor banks from having an advantage. C. most of the information on bank loans is private and based on sophisticated models. D. the financial statements of banks are too difficult for most people to understand.