In 2008-2009, Iceland and several Baltic states increased their interest rates. One would expect which of the following?
a. U.S. bond prices will fall and the dollar will appreciate.
b. U.S. bond prices will rise and the dollar will appreciate.
c. U.S. bond prices will fall and the dollar will depreciate.
d. U.S. bond prices will rise and the dollar will depreciate.
c
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According to behavioral economists, self-control problems:
A. are a rare aberration from rational decision making. B. are often caused by time inconsistency. C. can be easily overcome by providing decision makers with better information. D. occur frequently but have no impact on the ability of neoclassical models to predict economic outcomes.
To say money is socially defined means that:
A. money has been defined in a Constitutional amendment. B. whatever performs the functions of money extremely well is considered to be money. C. the money supply includes all public and private securities purchased by society. D. society, acting through Congress, specifies what shall be included in the money supply.