The Latin phrase ceteris paribus means that when a relationship between two variables is being studied
A) neither of those two variables is allowed to change.
B) both are treated as unpredictable.
C) we recognize that some factors are unknown.
D) all other variables are held fixed.
D
You might also like to view...
Refer to the above figure. Suppose that the economy starts at AD1. If the government reduces taxes, then the economy goes to AD2, but then falls back to AD1. This is an example of
A) laissez-faire. B) partial crowding-out effect. C) the free rider problem. D) complete crowding-out effect.
Everything else remaining unchanged, if the demand curve for reserves shifts to the right and borrowed reserves is zero:
A) there will be a decrease in both the federal funds rate and the quantity of reserves. B) there will be an increase in the federal funds rate but no change in the quantity of reserves. C) there will be an increase in both the federal funds rate and the quantity of reserves. D) there will be a decrease in the federal funds rate but no change in the quantity of reserves.