1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Allisa [31]
3 years ago
12

The argument that econometric policy evaluation is likely to be misleading if policymakers assume stable economic relationships

is known as:
A. the monetarist revolution.
B. the Lucas critique.
C. public choice theory.
D. new Keynesian theory.
Business
1 answer:
Lena [83]3 years ago
4 0

Answer:

B) the Lucas critique.

Explanation:

The Lucas critique was developed by Robert Lucas and it states that it is very naive to assume that economic relationships are fixed and don't change. When policymakers study the effects of changing economic policies they cannot use historical data to predict future relationships between economic agents.

You might be interested in
Question 6
AleksAgata [21]

Answer:

The answer is,

O To raise money for the corporation.

Explanation:

Issuing share is a method of financing for a corporation. Company can borrow money from external parties such as banks or issue debentures as well. However, the cost of such borrowings tends to be higher than issuing equity stocks and there are many legal necessities as well in such a process.

6 0
3 years ago
Suppose that there are small, but nontrivial, barriers to entry into
Fudgin [204]

Answer:

Firms make normal profits

Explanation:

Monopolistic competition is characterized by many firms selling similar but differentiated products. Each firm sets its price because they sell slightly different products. There are insignificant or no barriers to entry or exit in a monopolistic competition.

It is possible to make abnormal profits in monopolistic competition in the short run. Due to ease of entry and exit, a firm with abnormal profits will face competition from new entrants. In the long-run, no firm will dominate the market, which means all firms will be making normal profits.

3 0
3 years ago
By the 1990s did the u.s favor free trade or protection trade?​
densk [106]
The United States has free trade agreements (FTAs) in effect with 20 countries. ... The United States also has a series of Bilateral Investment Treaties (BITs) help protect private investment, develop market-oriented policies in partner countries, and promote U.S. exports.

The fledgling Republican Party led by Abraham Lincoln, who called himself a "Henry Clay tariff Whig", strongly opposed free trade and implemented a 44% tariff during the Civil War, in part to pay for railroad subsidies and for the war effort and in part to protect favored industries.

Another common argument against free trade is that it is unsafe to rely on upon conceivably antagonistic nations for vital goods and services. A few defenders of trade limitations contend that the danger of duties, shares, and so forth can be utilized as a negotiating advantage as a part of global negotiations.
3 0
3 years ago
Companies HD and LD are both profitable, and they have the same total assets (TA), total invested capital, sales (S), return on
jarptica [38.1K]

Answer:

Companies HD and LD

Since Company HD has the higher total debt to total capital ratio, the statement that is CORRECT is:

B) Company HD has a higher return on equity than company LD.

Explanation:

Return on Equity (ROE) is a financial measure of how well a company's management deploys shareholders' capital.  A higher ROE can be a result of high financial leverage, meaning that more debt than equity is being used to generate the returns.  Note that too much leverage poses solvency risks.

7 0
4 years ago
The Average Product of Labor is __________.
sveticcg [70]

Answer:

A) the ratio of output to the number of workers used to produce that output.  

Explanation:

As per definition, the average product of labor = Total Output/Number of workers employed .

All the other choice involve the change in total cost/revenue/output which means it will be Marginal and not average.

3 0
3 years ago
Other questions:
  • When the money supply curve shifts from ms1 to ms2,
    12·1 answer
  • Dimitri has several apple trees in his yard, and apples are a perfectly competitive market with a price of $2 per pound. if dimi
    11·1 answer
  • Stan read an ad in the newspaper which said that the jackpot for picking the six winners in the dog race on the last night of th
    15·1 answer
  • Use the probability distribution or histogram to find the? (a mean,? (b variance,? (c standard? deviation, and? (d expected valu
    10·1 answer
  • During a recession:
    11·1 answer
  • Suppose you manage the buyers at Best Bikes and you have been asked to help determine the requirements for a new vendor selectio
    6·1 answer
  • A new tax on gasoline causes a reduction in the purchase of new vehicles with poor fuel economy. This is an example of what type
    15·1 answer
  • 4. The automobile industry is highly competitive. Identify one area of strategy that an automaker can focus to innovate to remai
    7·2 answers
  • A wall street journal headline reads: "cigar shortage draws new brands into market." the shortage resulted from a renewed intere
    5·2 answers
  • When money serves as a store of value, it ____ urchasing power.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!