If the Federal Reserve conducts open market purchases, the money supply ________, shifting the LM curve to the ________, everything else held constant
A) decreases; right
B) decreases; left
C) increases; right
D) increases; left
C
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Discuss the advantages of using an income tax system such as the one discussed in this chapter, as opposed to a consumption tax.
What will be an ideal response?
The immigration rates of the 20th century returned to the high rates of the 19th century
Indicate whether the statement is true or false
Changes in the quality of some goods and services, such as electromechanical calculators, are thought to give a downward bias to the consumer price index
a. True b. False Indicate whether the statement is true or false
In a majority-rules democracy, economic thinking suggests that we should expect to see institutions and policies that
a. are short-sighted. b. take the long view, sacrificing current benefits to get larger future benefits. c. benefit the common citizen at the expense of narrow special interest groups which, after all, have fewer voters. d. are biased against income transfer programs, regardless of constitutional limits.