Some economists argue that the fed should commit to keeping + fixed at a particular value, say 5%. how would this rule require the fed to respond in the event of a negative spending shock? a negative real shock?
1 the answer is d- consumers using cash don't have to pay back money
2 alexander hamilton propose to pay for his economic plan by intended the plan to solve the economic problems that had plagued the united states. also hamilton proposed that the federal government pay the interest out of tax.
3. classical economics assumes people are rational and logical while behavioral economics adds psychology to the mix.
a major theory in classical economics is that human beings are rational and, given the necessary information they will make rational decisions and act rationally, however, behavioral economics assumes that people are irrational players.