Author Question: Present bias implies that: A) a consumer gives much more weight to the future than to the ... (Read 78 times)

Ebrown · **on:** Jun 29, 2018

Present bias implies that:

A) a consumer gives much more weight to the future than to the present.
B) a consumer gives much more weight to the present than to the future.
C) discount weights for delayed consumptions will always equal one.
D) discount weights for delayed consumptions will always be greater than one.

Question 2

Suppose the Fed buys 1 billion worth of bonds and the required reserve ratio is 10. In the theoretical limit, the money supply could

A) decrease by 1 billion.
B) increase by 1 billion.
C) decrease by 10 billion.
D) increase by 10 billion.