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Important information about rational expectations theory
1. Which of the following theories of expectations holds that individuals usa all information available in forming expectations?Rational expectations theoryCertainty equivalent theoryExpected value analysisAdaptive expectations theory
2. The only school of economics that could be construed as advocating big government are the :classicalskeynesiansmontearistssupply-sider
3. Proponents of the monetarist approach to economic stabilzation think that the growth of the money supply should be equal to the:prime ratelong-term average growth of real outputreal interest rategrowth of federal expenditures
4. A conclusion of the theory of rational expectations is that the impact of discretionary fiscal polices designed to shift the aggregate demand curve will:result in no net change in aggregate demandbe anticipated and compensated for, causing no significant in real GDP or employment levelsbe completely opposite of the intended resultbe incorrectly evaluated by most economist
As compared to high Japanese inflation may result in an increase in the supply of yen for sale
Bridget has limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
Assume you executed a 90-day forward contract to exchange 100,000 Swiss francs into US dollars. How many dollars would you get 90 days hence.
Illustrate what would you expect to happen to the total expenditures on good X.
Making dresses is a labour-intensive process. Indeed, the production function of a dress-making firm is well described by the equation Q = L - L 2 /800, where Q denotes the number of dresses per week and L is the number of labour-hours per week.
Suppose the company is considering using an amount equal to 10 percent of its retained earnings to invest in one of the two mutually exclusive projects.
Currently one argument against the continuation of state regulation of insurance and one argument.
Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."
A decision by the U.S. to utilize fiscal policy to run a fiscal deficit, chiefly through unprecedented heavy spending, to stimulate the US economy
Explain and discuss the mechanisms by which this has occurred, and contrast our experience with: a) the recent performance of many NICs (newly-industrializing-countries) in the last few decades
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