When inflation has not been very persistent, as was the case in the United States before the mid-1960s, we can expect that
A) the expected price level for a given year will equal the previous year's actual price level.
B) the current inflation rate will not depend heavily on past years' inflation rates.
C) lower unemployment rates will be associated with higher inflation rates.
D) all of the above
E) none of the above
D
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Between 1866 and 1914, statistical evidence suggests that many big businesses depended heavily on U.S. protectionist policies
Indicate whether the statement is true or false
There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
a. the prices of goods were artificially held down by price controls. b. black markets were legal during the war. c. goods were not subject to price controls. d. gasoline rationing greatly restricted civilians from driving to stores.
If the marginal cost of pollution abatement is smaller for large firms than it is for small firms, then it is efficient for:
A. small firms and large firms to increase pollution by a fixed proportion. B. small firms and large firms to reduce pollution by a fixed proportion. C. small firms to reduce pollution by more than large firms. D. large firms to reduce pollution by more than small firms.
A bank's liabilities are
A) things owned by or owed to the bank. B) things the bank owes to someone else. C) a measure of the bank's net losses. D) included as part of the bank's reserves.