As a result of the superb economics essay that you wrote during this quarter, you won the Adam Smith prize of $100. The receipt of these funds would be an example of
A. a pure substitution effect.
B. the income effect being stronger than the substitution effect.
C. a pure income effect.
D. the substitution effect being stronger than the income effect.
Answer: C
Economics
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During the 1990s, interest rates became ________ volatile than in the 1980s because the Fed used open market operations to ________ shifts in the IS and LM curves
A) more, reinforce B) less, offset C) more, offset D) less, reinforce
Economics
When two country's laws and regulations are similar, economist's arguments for free trade are:
A. stronger than when the laws are different. B. identical than when the laws are different. C. weaker than when the laws are different. D. the opposite than when the laws are different.
Economics