A tax is considered to be independent of:
a. investment
b. consumption.
c. government spending.
d. real GDP.
e. the price level.
d
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Along the short-run Phillips curve SRPC0 the expected inflation rate is
A) 7 percent. B) 3 percent. C) 6 percent. D) an amount that can be determined from the figure, but none of the above answers is correct. E) an amount that cannot be determined from the figure.
The other checkable deposits component of the M1 measure reported by the Federal Reserve includes
A) negotiable time deposits. B) money market mutual fund shares. C) automatic transfer from savings accounts. D) money market deposit accounts.
Getaway Spas wants to prevent Relax with Us from entering the luxury spa market. If Getaway Spas advertises that it will always undercut any competitor's price, the effect of advertising ________ Getaway Spas' profits due to its cost and ________ Getaway Spas' profits due to a(n) ________ in its demand.
A) decreases; decreases; increase B) decreases; increases; increase C) increases; increases; increase D) decreases; decreases; decrease
The potential for a financial breakdown at large institutions to spread throughout the financial system is called
A) a systemic risk. B) a too-large-to-fail problem. C) an averse selection problem. D) a moral hazard.