The "wealth effect" of lower interest rates is that bond prices are __________ so people respond to this by __________ consumption and thus __________ aggregate demand

A major problem that may occur with models that predict the values of economic variables in the future is that

a. researchers are pessimistic about the future. b. the model may fail to acknowledge that economic actors will change their behavior in response to changing situations. c. the model may make predictions that conflict with widely held opinions. d. no one cares about these predictions.

The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth

a. True b. False