This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A fall in autonomous investment will shift the a. IS curve to the right toward higher interest ... (Read 45 times)

renzo156

  • Hero Member
  • *****
  • Posts: 526
on: Jun 30, 2018
A fall in autonomous investment will shift the
 
  a. IS curve to the right toward higher interest rates and output.
  b. LM curve to the right towards lower interest rates and higher output.
  c. IS curve to the left towards higher interest rates and output.
  d. None of the above

Question 2

Discuss four problems with the CPI. Does the CPI tend to overestimate or underestimate the true inflation rate? How big is this bias?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

soda0602

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The CPI tends to overestimate the true inflation rate because it ignores the substitution of cheaper goods for more costly goods, because it ignores unmeasured changes in quality that also lead to increases in price, and because it ignores new products that are often cheaper than existing products. Economists have predicted that the positive bias may be as large as 1.1 a year.


renzo156

  • Member
  • Posts: 526
Reply 2 on: Jun 30, 2018
Gracias!

bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Evolutionary shift in plant life cycle stage dominance. Evolutionary shift in plant life cycle stage dominance.
Fall Fall
How to plot a sine function containing an amplitude and phase shift (Question 1 of 3) How to plot a sine function containing an amplitude and phase shift (Question 1 of 3)
The Kuznets Curve in England and Wales, 1823–1915 The Kuznets Curve in England and Wales, 1823–1915
Higher-Order Conditioning Higher-Order Conditioning
A $50 000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August ... A $50 000 bond bearing interest at 5.5% payable semi-annually is redeemable at par on August ...
Video: Sister chromatids of a metaphase chromosome animation

For a complete list of videos, visit our video library