A lender of last resort
A) makes loans when no one else will.
B) makes loans without regard for risk.
C) is a firm that is forced to make loans for its own survival.
D) Both A and B.
E) None of the above.
A
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What is the "reverse causality" problem in determining cause and effect?
A) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Z that caused a change in variable Y. B) It is a problem that occurs when one observes that a change in variable X caused a change in variable Y which caused a change in variable Z and concludes that a change in variable X caused a change in variable Z. C) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X. D) It is a problem that arises when two variables are inter-connected so that a change in variable X causes a change in variable Y, and a change in variable Y causes a change in variable X.
Which statement is most accurate?
A. There is virtually no poverty in the U.S. because the standard of living of all Americans has at least tripled since World War II. B. Compared to the average citizens of Bangladesh, Ethiopia, and Zambia, most of our poor would be considered relatively well off. C. Most of those living below the poverty line are homeless. D. As welfare programs are cut back the poverty rate will decline.