If it were not for the automatic stabilizers in the U.S. economy,
a. the Federal Reserve would have less reason than it has now to monitor stock prices.
b. it would be more desirable than it is now for the Federal Reserve to target an interest rate.
c. a strict balanced-budget rule would be more desirable than it is now.
d. output and employment would probably be more volatile than they are now.
d
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No particular stock is a better buy than any other stock if
a. stock prices are driven by investors' "animal spirits.". b. the random-walk theory of stock prices is incorrect. c. the efficient markets hypothesis is correct. d. actively managed mutual funds always outperform index funds.
The political philosophy that views the redistribution of income as a form of social insurance is
a. utilitarianism b. liberalism c. libertarianism d. welfarism
Suppose that there are two laws proposed for eviction notices. Plan A requires landlords to give a renter 30 days to vacate an apartment once he has been served an eviction notice. Under Plan B, he has 60 days to vacate an apartment once he has been served an eviction notice. It follows that landlords will find
A) Plan A more expensive than Plan B. B) Plan B more expensive than Plan A. C) both plans to be equally expensive. D) none of the above
The economy of the United States would best be classified as:
a. closed economy b. socialism c. command economy d. A market system