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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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)
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