Paradoxically, when the economy most needs injections of money, the economic conditions are such that
a. borrowers are particularly eager to go to banks for loans
b. borrowers are most reluctant to borrow (demand loans) from banks
c. the FDIC will insist that banks raise the interest rate they charge borrowers
d. the FSLIC and FDIC will insist that banks lower the interest rate they charge borrowers
e. the Federal Reserve will print less money
B
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In September 2006, the Food and Drug Administration recommended that Americans avoid eating bagged raw spinach in the wake of an outbreak of E. coli bacteria
Following this recommendation, the food industry looked at alternatives and many turned to arugula. One Chicago distributor claimed, "The sale of the stuff has gone through the roof." Based on this information A) the cross-price elasticity between arugula and spinach is negative. B) the cross-price elasticity between arugula and spinach is positive. C) the price elasticity of arugula is positive while the price elasticity of spinach falls to zero. D) arugula is a normal good while raw spinach is an inferior good.
Which of the following is a problem when comparing GDPs per capita between nations?
A. GDP per capita only measures income distribution. B. Fluctuations in exchange rates affect differences in GDP per capita. C. GDP per capita is subject to greater measurement errors for IACs compared to LDCs. D. GDP per capita is likely overstated in LDCs due to families producing goods and services outside of the pricing system.