Use the following two statements to answer this question:
I. Economic theories are developed to explain observed phenomena by deducing from a set of basic rules and assumptions.
II. Economic theories use value judgments to determine which people ought to pay more taxes.
A. Both I and II are false.
B. I is false, and II is true.
C. I is true, and II is false.
D. Both I and II are true.
C. I is true, and II is false.
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When people became ________ concerned with the underlying value of their houses and became ________ concerned with the expectations of the prices of their houses increasing, a housing bubble occurred
A) more; less B) more; more C) less; more D) less; less
The substitution effect of a change in the real interest rate is an example of
A) an intratemporal substitution effect. B) an intertemporal substitution effect. C) an atemporal substitution effect. D) a temporary substitution effect.