If monetary policy makers want to target a negative interest rate, they:
A. need to stop inflation before they do it.
B. need to encourage inflation before they do it.
C. cannot do so since negative interest rates are impossible.
D. need to stop asset inflation before they do it.
Answer: B
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The best guess has turnover unemployment about ________ as mismatch unemployment
A) three times as large B) twice as large C) the same size D) two-thirds as large E) half as large
Continuing from the question above, an additional 10 people join the group who have expected medical spending of $5,000 per person on average. The new premium will be approximately
a. $1,500 b. $2,200 c. $2,500 d. $4,500
When demand is inelastic, a decrease in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.
Firms with internal labor markets have more flexibility in deciding the level and time profile of wages because
A. individuals tend to base their employment decisions on their entire career earnings. B. compensating wage differentials do not have to be paid in internal job markets. C. they have to pay the wage rate that equals the marginal revenue product of labor. D. firm-specific human capital is less costly than general human capital.