Economic theory offers ______ about the full range of possible events and responses, which can prevent ______ about how households will respond to changes in prices or incomes.

A. two budget constraint theories; misguided possibilities
B. systematic consumption choices; unrealistic conclusions
C. one budget constraint theory; unrealistic possibilities
D. a systematic way of thinking; misguided conclusions


Answer: D. a systematic way of thinking; misguided conclusions

Economics

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As the Fed responded to the financial crisis that followed the collapse of the housing market, certain banks were deemed too:

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Economics

International capital flows in an open economy have the effect of

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Economics

An American computer is priced at $1,200. If the exchange rate between the U.S. dollar and the Mexican peso is $0.09 = 1 peso, approximately how many pesos would a Mexican buyer pay for the computer?

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Economics