A reduction in the rate of inflation is called:
A. deflation.
B. disinflation.
C. hyperinflation.
D. cost-push inflation.
Answer: B
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When gross investment is positive, net investment ________.
A. must be positive B. is always zero C. may be either positive or negative D. must be negative
If Happy Feet chooses to No Ad and Best Nails then chooses to No Ad, Happy Feet earns ________ million in net profit and Best Nails earns ________ million.
Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $1; $4 B) $2; $3 C) $4; $1 D) $5; $1
Refer to Exhibit 2-1. The movement from point A to point B is a movement from
 ANSWER 3.png)
The key policy target in the Taylor rule is the:
A. money supply. B. federal funds interest rate. C. average tax rate. D. full-employment budget.