Suppose an individual were to win $1,000 in Las Vegas. The permanent-income hypothesis predicts that the individual would NOT be likely to
A) put his winnings in the bank.
B) throw a party.
C) buy a dishwasher.
D) purchase some shares in a corporation.
B
Economics
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Both monopolistically competitive firms and perfectly competitive firms maximize profits
A) by producing where price equals average total cost. B) by producing where price equals average variable cost. C) by producing where marginal revenue equals marginal cost. D) by producing where marginal revenue equals average revenue.
Economics
The Federal Reserve Bank of New York
A) executes open market operations. B) sets reserve requirements. C) establishes the prime rate. D) establishes the three-month Treasury bill rate.
Economics