The feedback effect can be thought of as a type of
A) social regulation.
B) economic regulation.
C) creative response, which reduces the law's effectiveness.
D) regulatory lag.
C
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The inflation rate = ________
A) nominal GDP - real GDP B) growth rate in real GDP - growth rate in nominal GDP C) growth rate in real GDP + growth rate in nominal GDP D) nominal GDP รท real GDP E) none of the above
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and nominal value of the domestic currency rises. b. There is not enough information to determine what happens to these two macroeconomic variables. c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. d. The real risk-free interest rate falls, and nominal value of the domestic currency falls. e. The real risk-free interest rate rises, and nominal value of the domestic currency falls.
In Lee Benham's 1972 article examining the impact of advertising on the average price paid for a pair of eyeglasses, Benham found that
a. the average price paid for eyeglasses was nearly 20% higher in the states that did not restrict advertising. b. the average price paid for eyeglasses was nearly 20% lower in the states that did not restrict advertising. c. there was no difference in the average price paid between states that restricted advertising and those that did not. d. the average price paid for eyeglasses was almost 5 times higher in the states that did not restrict advertising.
Bond prices and bond yields have a(n) ______________ relationship
A) direct B) inverse C) independent D) positive