According to the policy irrelevance proposition
A) monetary policy can effectively reduce the rate of unemployment in the short run.
B) workers are not rational in the long run.
C) expansionary monetary policy will only lead to a higher rate of inflation in the long run.
D) the Phillips curve slopes upward, not downward as traditionally assumed.
C
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Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive, easy to prepare, and can be combined easily with other foods. After students graduate, find employment, and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are
A) a normal good. B) an inferior good. C) a complement for higher income people. D) a substitute good. E) None of the above answers is correct.
The data in the table above are the U.S. balance of payments. What is the current account balance?
A) $0 B) $150 billion C) -$100 billion D) -$150 billion
A utility-maximizing consumer equalizes marginal utilities per dollar spent across all goods
a. True b. False Indicate whether the statement is true or false
Suppose the market rate of interest is 5%. The local government imposes a tax of $40 per acre on all land located within city limits. The year after the tax is imposed, Val sells an acre of land on which she had planned to build a house. How much was Val's share of the economic burden of the tax?
a. $0. b. $40. c. $200. d. $800.