When inflation is much higher than expected, which of the following is true?
a. Nominal incomes are lower than expected.
b. Real interest rates are higher than expected.
c. Income is redistributed from those whose expenditures are fixed toward those who receive a fixed income.
d. Nominal interest rates are lower than expected.
e. Real interest rates are lower than expected.
e
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Which of the statements below best captures the meaning of competition as discussed in Chapter 5?
A) Competition is a process; it makes everyone in the society better off even though there can only be one winner. B) Competition is an individualist system in which people do not concern themselves with the welfare of others. C) Competition is the law of the jungle producing social wealth. D) Competition is the process of trying to outdo others. E) Competition occurs when people strive to satisfy the criteria others are using to allocate valued goods.
Many basketball players and fans believe in the "hot hand." That is, they believe that a player is more likely to make a shot if that player has made several shots in a row
What does the hot hand hypothesis have to do with the idea of independent events? How might you test the hot hand hypothesis?