According to monetary theories of the business cycle, fluctuations are
a. independent of the banking system.
b. more prevalent in countries with modern banking systems.
c. more prevalent in agricultural countries.
d. less prevalent in those countries with modern banking systems.
b. more prevalent in countries with modern banking systems.
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In the 1960s, U.S. economy experienced
a. a substantial decline in real GDP but limited inflation. b. a substantial decline in real GDP coupled with significant inflation. c. substantial real GDP growth coupled with significant inflation. d. substantial real GDP growth with limited inflation.
When a reduction in the price of a good allows a consumer to purchase more of all goods, this effect is called the:
a. income effect. b. substitution effect. c. elasticity effect. d. monetary effect.
A stock market boom which causes stock prices to rise should cause
A) a decrease in consumption spending. B) a decrease in wealth. C) an increase in consumption spending. D) a decrease in net export spending.
Relative to life insurance companies, the liabilities of property and casualty insurance companies are
A) longer-term. B) more unpredictable. C) less risky. D) subject to higher taxes.