In the Keynesian model, government spending is considered
A. a negative function of real GDP.
B. to be a negative function of the real interest rate.
C. to be autonomous.
D. a positive function of real GDP.
Answer: C
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A banking panic is an episode in which:
A. commercial banks, concerned about high interest rates, rush to borrow at the Federal Reserve discount rate. B. commercial banks, fearing Federal Reserve sanctions, unwillingly participate in open-market operations. C. depositors, afraid of increasing interest rates, attempt to engage in discount-window borrowing at the Federal Reserve. D. depositors, spurred by news or rumors of possible bankruptcy of one bank, rush to withdraw deposits from the banking system.
If the utility function (U) between food (F) and clothing (C) can be represented as U = , the marginal utility of food equals
A) . B) . C) 1/2 . D) 1/2 .
The idea that when we own something we value it more than other people do is called:
a. self control b. anchoring c. compartmentalizing d. the endowment effect
Intertemporal decisions are
a. decisions in one period of time. b. decisions over time. c. decisions made without thinking about time. d. decisions involving infinity.