A gamble can be described as "fair" if the expected value of the gamble (including any costs of play) is
a. positive.
b. zero.
c. negative.
d. one.
b
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The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate; it can act preemptively against negative demand shocks by ________ the federal funds interest rate
A) raising; lowering B) raising; raising C) lowering; lowering D) lowering; raising
A circular flow diagram traces the flows of inputs and outputs between:
A. households and the government. B. households and firms. C. households in one country and households in another country. D. firms in one country and households in another country.
One criticism against "supply-side" cuts in marginal tax rates is that they fail to:
A. Decrease disinflation in the economy B. Decrease demand-pull inflation in the economy C. Increase aggregate supply more rapidly than aggregate demand D. Increase aggregate demand more rapidly than aggregate supply
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.