The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier.
B. self-correcting property.
C. short-run equilibrium property.
D. long-run equilibrium property.
Answer: B
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For restrictive covenants to help reduce the moral hazard problem, they must be ________ by the lender
A) monitored and enforced B) written in all capitals C) easily changed D) impossible to remove
A decrease in government purchases or an increase in taxes, other things being equal, will tend to:
a. increase interest rates and decrease investment as a result. b. increase interest rates and increase investment as a result. c. decrease interest rates and decrease investment as a result. d. decrease interest rates and increase investment as a result.
Which of the following is not part of our portfolio of antitrust acts?
a. Sherman Act b. Clayton Act c. Federal Trade Commission Act d. Robinson-Patman Act e. Herfindahl-Hirschman Act
Figure 10-6
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In Figure 10-6, which graph best illustrates an autonomous increase in consumption spending?
A. (1) B. (2) C. (3) D. (4)