Which of the following supports the argument for hands-on policy?
A. The failure of discretionary policy.
B. The theory of rational expectations.
C. Greater stability of the economy in the last 40 years.
D. The existence of the four obstacles to policy success.
Answer: C
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The figure above shows the relationship between study time and the number of problems worked. The curve becomes less steep because as you study more,
A) study time becomes less effective. B) study time becomes more effective. C) the number of problems worked increases. D) the number of problems worked decreases. E) the relationship between study time and the number of problems worked changes from direct to inverse.
When the price of apples is $3 per bushel, and the quantity demanded is 1,000 bushels,
A) consumers need 1,000 bushels. B) consumers plan to purchase a total of 1,000 bushels. C) both A and B are true. D) none of the above is true.
The business cycle progresses from an expansion to a peak to a recession and then to a trough
Indicate whether the statement is true or false
An open-market sale
a. increases the number of dollars and the number of bonds in the hands of the public. b. increases the number of dollars in the hands of the public and decreases the number of bonds in the hands of the public. c. decreases the number of dollars and the number of bonds in the hands of the public. d. decreases the number of dollars in the hands of the public and increases the number of bonds in the hands of the public.