Refer to Current and Future Consumption. The diagram shows the case of a
a. representative agent.
b. net borrower.
c. net lender.
d. disequilibrium situation.
c. net lender.
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An example of moral hazard is
a. workers shirking when the boss is not looking b. health care insured workers dieting and exercising c. drivers of safer cars turning their phones off before driving d. borrowers investing their loan proceeds exactly as the bank requires
The misery index is the
A. Unemployment rate minus the interest rate. B. Inflation rate plus the interest rate. C. Inflation rate plus the unemployment rate. D. Inflation rate minus the unemployment rate.
Which of the following monetary policies would be appropriate to close a recessionary gap?
What will be an ideal response?
The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted.
The cost to the government of the indicated export subsidy is shown by area(s)
A. (a + b + c + d + e + f + g + h + i + j) B. (c + h) C. (b + c + d + f + g + h + i + j) D. (b + c + d)