Of the relationships below, which is the least stable?
A) consumption B) investment C) net exports D) saving
B
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An insurance company is likely to attract customers who want to purchase health insurance because they know better than the company that they are more likely to file a claim on a policy. This situation describes
A) adverse selection. B) asymmetric information. C) moral hazard. D) a premium death spiral.
Which of the following statements accurately describes the Fed's control of discount policy?
A) It controls discount policy more completely than it controls open market operations. B) It must abide by discount rates set by Congress. C) It controls discount policy less completely than it controls open market operations. D) It controls discount policy completely, just as it controls open market operations.
Economic growth causes the
A) production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward. B) production possibilities curve to shift leftward and the long-run aggregate supply curve to shift rightward. C) production possibilities curve to shift rightward and the long-run aggregate supply curve to shift leftward. D) production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in aggregate demand. B. increase in aggregate demand. C. decrease in short-run aggregate supply. D. increase in short-run aggregate supply.