Regarding government manipulation of the interest rate, all of these statements are correct, except:
A) To address business fluctuations, governments may reduce interest rates to induce people to borrow.
B) Such manipulations may give little thought to the effects on resource allocation between present and future.
C) Economists agree with the concept of using of interest rates to allocate resources among different time periods.
D) Generally, the price system reflects public preference between present and future resource allocation.
Correct Answer:
Verified
Q175: An "optimally imperfect" decision is one that
A)is
Q179: A process through which a firm seeks
Q180: The cost disease of personal services stems
Q181: The most threatening and damaging detrimental externality
Q182: An economy produces only two goods, paper
Q186: The market's contribution to the general welfare
Q187: Pleasure boaters enjoy the use of waterways,
Q191: The concept of "government failure" implies
A)laissez faire
Q193: Define the following terms and explain their
Q193: Which of the following is not generally
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents