Suppose the government considers placing a tax on business profits o that businesses decrease their production and generate a deadweight loss. Revenues from the tax would be used to boost the incomes of the poor
The decision to levy the tax implies that in this case, the government A) values people but not business.
B) values efficiency more than its view of fairness.
C) profits from taxes.
D) values its view of fairness more than efficiency.
D
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Which of the following is included in M0, but not in M1?
A) demand deposits B) deposits of depository institutions at the Federal Reserve C) currency held by the U.S. public D) U.S. currency held by foreigners
If the central bank targets a rate of nominal GDP growth, then it would have to _____ money growth when nominal GDP fell below its target in order to _____ inflation and ____ real GDP
a. increase; increase; increase b. increase; decrease; decrease c. decrease; decrease; decrease d. decrease; decrease; increase
As the probability of detecting shirking increases, the size of the bond necessary to deter shirking
A) also increases. B) stays the same. C) decreases. D) increases at an exponential rate.
One characteristic of cattle that makes them unsuitable as a medium of exchange is that they are not easily divisible
a. True b. False Indicate whether the statement is true or false