According to rational expectations theory, which of the following is the best approach to lower the inflation rate?
A. preannounced stable government policies
B. unpredictable government policies
C. first predictable and then unpredictable government policies
D. None of these.
Answer: A
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 10,000 units
A) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low. B) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low. C) producers should lower the price to $1 in order to sell the quantity demanded of 10,000. D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.
A disadvantage of ________made from precious metals is that it is very heavy and hard to transport from one place to another
A) commodity money B) fiat money C) electronic money D) paper money