The variables in the index of leading indicators are included in the index because
a. they turn down prior to a deflation and turn up prior to an inflation.
b. they generally lag behind turns in the business cycle.
c. they turn down prior to a recession and turn up before the beginning of a business expansion.
d. they provide a comprehensive measure of the current state of the economy.
C
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If the Fed buys bonds from a private bank, ________
A) the Fed's total liabilities will remain unaffected B) the Fed's total assets will remain unaffected C) the private bank's composition of assets will change D) the private bank's total assets will increase
The marginal benefit of acquiring additional information tends to
a. be zero if the marginal cost of information is zero b. increase and then decrease as additional information is obtained c. be smaller, the smaller the quantity of information the individual already has obtained d. increase as additional information is obtained e. decrease as additional information is obtained