Unemployment compensation is:
A. an automatic stabilizer because it rises as income increases, slowing an economic expansion.
B. an automatic stabilizer because it falls as income decreases, slowing an economic contraction.
C. not an automatic stabilizer.
D. an automatic stabilizer because it falls as income increases, slowing an economic expansion.
Answer: D
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A) direct, spread B) direct, concentrated C) indirect, spread D) indirect, concentrated
In Figure 23.1, for a good with no externality, which area represents the total value to the consumer? 
A. 0BCQ* B. BP*C C. 0ACQ* D. 0P*CQ*
The theory that there is no predictable trends in securities prices is the
A. capital reinvestment. B. present value. C. random walk theory. D. opportunity cost of capital.
Financial innovations can have the effect of
A) only decreasing the demand for money. B) only increasing the demand for money. C) either increasing or decreasing the demand for money depending on what the innovation is. D) increasing the Fed's monetary policy.