Keynes used the phrase animal spirits to describe the feelings of entrepreneurs, and he argued that these feelings affect investment decisions.
Answer the following statement true (T) or false (F)
True
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Quantitative easing refers to a situation in which conventional monetary policy is ineffective in fighting an economic slump because nominal interest rates are up against the zero bound
a. True b. False Indicate whether the statement is true or false
To induce an agent to work hard, a principal may offer the agent a bonus, in other words, an extra payment if a performance target is hit
Suppose that the agent's performance is affected by factors beyond the agent's control, for example umbrellas are demanded more on a rainy day. Under what conditions may the bonus not induce the agent to work harder? A) The agent is very risk averse. B) The agent is very risk loving. C) The agent is risk neutral. D) The principal is risk neutral.
Today black and Hispanic Americans have poverty rates:
A. three times as high as white Americans. B. four times as high as white Americans. C. twice as high as white Americans. D. half as high as white Americans.
As production of a good increases, opportunity costs rise because:
A. there will be more inefficiency. B. people always prefer having more goods. C. of inflationary pressures. D. workers are not equally suited to all tasks.