Economic analysis indicates that the monetary policy of the 1930s, which shifted back and forth between restrictive monetary policy and expansionary monetary policy, would likely result in
a. economic stability and growth in real levels of output.
b. keeping the general level of prices relatively stable because the periods of restrictive policy would just offset the periods of expansion.
c. an environment of uncertainty, which would lead to economic instability.
d. economic stability, because changes in monetary policy can be counted on to exert a predictable impact on the economy quickly.
C
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If an economy maintains a small rate of growth for a long period of time, then the size of the economy
A. will stay nearly constant. B. can increase by a large amount. C. can never double. D. can only increase by a small amount.
When the minimum marginal penalty for tax evasion is greater than the maximum marginal tax rate, theory suggests that tax evasion will be
A. greater than 1. B. ?. C. 0. D. 100.
Inventory is the
a. net change in inventories of final goods awaiting sale. b. net change in inventories of materials used in the production process. c. included in investment when calculating GDP. d. Both a and b. e. All of the above.
Use the above table. What percentage of income is received by the poorest 60% of the population?
A) 27.78 percent B) 33.33 percent C) 44.44 percent D) 55.56 percent