"If we come to a company's rescue this time, they'll take more risks and we'll have to come to their rescue next time, too." The economist who said this most likely
A) believes that the AS curve is upward-sloping.
B) prefers monetary policy to fiscal policy when it comes to stabilizing the economy.
C) is against bailouts.
D) prefers increases in government spending to tax cuts when it comes to stimulating the economy from the demand side.
E) none of the above
C
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Explain the logic of the multiplier effect
What will be an ideal response?
Which of the following must be true of an attorney who buys a portable computer so that she can work on trains and planes?
a. She is engaging in conspicuous consumption. b. She gets utility from working. c. She thinks the opportunity cost of her time is higher than it really is. d. She thinks the opportunity cost of her time is lower than it really is. e. She is trying to reduce the opportunity cost of traveling.
Which of the following events would produce an upward shift in the consumption function, other things being equal?
a. An increase in consumer wealth. b. A decrease in consumer wealth. c. A decrease in autonomous consumption. d. Both b and c.
Which statement is FALSE with respect to the size and role of the U.S. government?
A. Two major crises, the Great Depression and World War II, led to a much greater economic role for the federal government. B. Since 1945, the role of government at the federal, state, and local level has expanded. C. The economic role of the federal government has steadily expanded ever since the Civil War. D. The seeds of the expansion of the federal government's economic role were sown during the Roosevelt administration from 1933-1945.