Which of the following would make a reasonable hypothesis to test?
A) Rising inflation is bad for the U.S. economy.
B) An inflation rate above 4% is dangerous for the British economy.
C) As interest rates increase, eventually the inflation rate will decline.
D) Increases in inflation are worse for the U.S. economy than are increases in public sector borrowing.
C
You might also like to view...
Of the following, the largest component of GDP is
A) personal consumption expenditure. B) gross private domestic investment. C) government expenditure on goods and services. D) net exports of goods and services.
In monopolistic competition, when firms make an economic profit
A) the existing firms continue to make an economic profit in the long run because of product differentiation. B) new firms enter the industry so that the price falls and the economic profit eventually falls to zero. C) new firms enter the industry so that output decreases and the economic profit increases. D) new firms enter the industry so that output increases and the economic profit increases.
In the long run, for a perfectly competitive market, if economic profit is
A) less than zero, then some firms will exit the market and the market supply curve will shift leftward. B) greater than zero, then some firms will enter the market and the market supply curve will shift rightward. C) equal to zero, then there is no entry or exit of firms into or out of the market. D) All of the above answers are correct.
The Great Depression lead many to question the economy’s ability to self-correct.
Answer the following statement true (T) or false (F)