If real extraction costs do not change, the relative price of a finite resource would be expected to
a. fall over time.
b. remain constant over time.
c. rise at a rate given by the nominal rate of interest.
d. rise at a rate given by the real rate of interest.
d
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Falling growth rates during the 2007-2009 recession occurred:
A. only in the United States. B. in the United States and Canada, but not in Germany, the United Kingdom, or Japan. C. only in the high-tech sectors of the U.S. economy. D. in the United States, Canada, Germany, the United Kingdom, and Japan.
How would the Fed's sale of government bonds on the open market affect the money supply?
What will be an ideal response?
An autonomous rise in ________ shifts the LM curve to the ________, everything else held constant
A) net exports; right B) net exports; left C) money demand; right D) money demand; left
Answer the following statement(s) true (T) or false (F)
1. Consumers use bounded rationality to take shortcuts in mental processing. 2. Rules of thumb tend to make people less confident. 3. Framing occurs when consumers treat money differently depending on where they got it. 4. Anchoring occurs when people rely heavily on the first piece of information offered when making a purchase. 5. The traditional consumer choice model predicts and explains most consumer behavior quite well most of the time.