Interest rate fluctuations
A) are usually not considered to be of much importance and are largely ignored by the Fed.
B) have the paradoxical effect of increasing the rate of economic growth.
C) make it difficult for households and firms to plan for the future.
D) have largely been eliminated by the Fed during the past two decades.
C
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Which of the following statements is true?
A) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time. B) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time. C) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them. D) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, and the explicit costs of his business are $10,000. What is his accounting profit?
A) $10,000 B) $22,000 C) $32,000 D) $42,000
To promote long-term economic growth, national governments should:
a. Increase government spending and reduce taxes. b. Reduce government spending and increase taxes. c. Establish fair rules of behavior and provide the means to enforce them. d. Promote research and development with federal funds. e. Impose tariffs and quotas until the nation is on its feet.
When people alter behavior in response to taxes, which of the following is not true?
A. Excess burden is created. B. Inefficiency occurs. C. Tax shifting might occur. D. The excise tax rate can increase.