In an economic model of consumer behavior, rational self-interest would likely be
a. a key variable
b. the hypothesis of the model
c. a behavioral assumption
d. a prediction of the model
e. a method of testing the model
C
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Demand-pull inflation occurs
A) when the aggregate supply curve shifts to the right, while aggregate demand remains stable. B) when the aggregate demand curve shifts to the right, while aggregate supply remains stable. C) when the aggregate demand curve shifts to the left, while aggregate supply remains stable. D) when the aggregate supply curve shifts to the left, while aggregate demand remains stable.
The present value of a future sum of money is the amount that, if invested today, will grow
A) as large as that future sum, given the interest rate. B) at a constant rate forever. C) as large as that future sum, less taxes payable. D) as large as that future sum, if the interest rate is zero.