If the fluctuations in the economy’s real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show
A. a cyclical relationship between inflation and unemployment.
B. a direct relationship between inflation and unemployment.
C. an inverse relationship between inflation and unemployment.
D. no relationship between inflation and unemployment.
Answer: C
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A) the tragedy of the commons B) the free-rider problem C) the paradox of thrift D) the prisoners' dilemma
If the Fed reduces the required reserve ratio,
a. excess reserves will increase. b. excess reserves will decrease. c. total reserves will increase. d. total reserves will decrease.
Chinese private companies get their capital largely from:
a. The Whenzou market b. Private banks c. IPOs d. State banks e. Government grants
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