According to behavioral economics, one major cause of self-control problems (such as strictly following through on "new year's resolutions") is:
A. Time inconsistency
B. Mental accounting
C. Anchoring
D. Framing
A. Time inconsistency
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Explain how deficit spending could be a burden to future generations
What will be an ideal response?
The bond market, the stock market, banks, pension funds, and insurance companies are all financial
a. systems. b. markets. c. institutions. d. intermediaries.
Refer to the information provided in Figure 3.5 below to answer the question(s) that follow.
Figure 3.5Refer to Figure 3.5. If consumer income decreases, the demand for chili peppers shifts from D0 to D1. This implies that chili peppers are a(n)
A. inferior good. B. substitute good. C. complementary good. D. normal good.
Suppose the Fed bought $150 million of U.S. securities from the public. The reserve requirement is 20 percent, and there are no initial excess reserves. A few weeks later, if the public's holdings of currency are constant and the banks have loaned all excess reserves, the money supply will increase by
a. $150 million. b. $300 million. c. $600 million. d. $750 million.