Ricardian Equivalence theory assumes that ________
A) an anticipated increase in the income of future generations will reduce the amount that is saved today on their behalf
B) government spending remains constant
C) many people are subject to borrowing constraints
D) tax cuts have a positive impact on aggregate supply
A
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The labor force is defined as the number of people who
A) are employed plus the number of people who are unemployed. B) are available and looking for work but are unable to find employment. C) would like to have a job but have stopped seeking work. D) would like to have a full-time job but are working part time. E) are employed minus the number of people who are unemployed.
Which of the following statements is true?
a. A vertical merger is a merger of firms that compete in the same market. b. The rule of reason doctrine declares that the existence of monopoly alone is illegal. c. Government regulation is economically justifiable for a natural monopoly. d. Deficient information on unsafe products causes underconsumption.
In the forex, the demand for dollars will decrease if:
A. foreigners wish to buy U.S. goods. B. foreigners wish to buy U.S. financial assets. C. interest rates are lower in the U.S. relative to interest rates abroad. D. interest rates are higher in the U.S. relative to interest rates abroad.
Stock market price quotations best exemplify money serving as a:
A. index of satisfaction. B. store of value. C. unit of account. D. medium of exchange.