If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to take precautions that are not cost-justified
A) overestimated, overestimated
B) overestimated; underestimated
C) underestimated; overestimated
D) underestimated; underestimated
B
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If the Fed sells government securities
A) commercial bank reserves will decrease. B) the government's debt will decrease. C) commercial bank reserves will increase. D) there will be no effect on the quantity of money.
What is the difference between seasonal unemployment and structural unemployment?
What will be an ideal response?
Assume the economy is in recession, the MPC is 0.80, and an increase of $200 billion in spending is needed in order to reach full employment. The target can be reached if government spending is increased by:
A. $20 billion. B. $200 billion. C. $80 billion. D. $40 billion.
The shut-down decision is a short-run decision.
Answer the following statement true (T) or false (F)