Which of the following can be considered as an automatic stabilizer in the economy?
a. Real exchange rate
b. Real interest rate
c. Unemployment insurance
d. Money supply
e. Disposable income
c
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Carla spends all her income on two goods: apples and bananas. The price of an apple is $2 and the price of a banana is $1 . If Carla's marginal utility of an apple is 4 and her marginal utility of a banana is 3, she should consume
a. more apples and fewer bananas to maximize total utility b. more bananas and fewer apples to maximize total utility c. more apples and more bananas to maximize total utility d. fewer apples and fewer bananas to maximize total utility e. exactly what she is consuming because she always makes the most rational choice each time she spends a dollar.
The local substitution argument against using public money to attract baseball spring training sites is
A. even more valid than the argument against regular stadiums. B. less valid than the argument against regular stadiums because most of the fans at a spring training game are tourists who would not be in that city otherwise. C. completely invalid because no one at a spring training game is from the local community. D. just as valid as the argument against regular stadiums.