A central tenet of the position against policy activism is that
A) consumption spending is highly unstable.
B) consumption spending is highly stable.
C) aggregate policies have little effect on consumption.
D) instability in private consumption will always be offset by variations in other elements of private spending.
B
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If the annual real rate on a 10-year inflation-protected bond equals 1.9 percent and the annual nominal rate of return on a 10-year bond without inflation protection is 4.4 percent, what average rate of inflation over the ten years would make holders of inflation-protected bonds and holders of bonds without inflation protection equally well off?
A. 6.3 percent B. 2.5 percent C. 1.9 percent D. 4.4 percent
If the percentage change in quantity demanded is proportionately greater than the percentage change in price, the product is said to be;
(a) Elastic. (b) Perfectly Elastic. (c) Inelastic. (d) Unit Elastic.