Governments can discourage consumption of certain goods by:
A. a subsidy to consumers in those markets.
B. taxing substitute goods.
C. imposing a minimum price above the equilibrium price.
D. None of these policies decrease consumption of goods.
C. imposing a minimum price above the equilibrium price.
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What is the discounted value of $60,000 to be received after six years, if the ongoing rate of interest is 6% per annum?
A) $41,212.84 B) $42,297.63 C) $44,666.95 D) $51,220.64
Suppose U.S. net exports are -$400 billion and the U.S. government sector surplus is $200 billion. Then in the private sector, saving minus investment equals
A) -$600 billion. B) -$200 billion. C) +$600 billion. D) +$200 billion.
Suppose that in 2016, real GDP grew in Estonia by 3% and the population increased by 5%. Therefore, in 2016, Estonia experienced
A) economic growth and an increase in living standards. B) no economic growth, but an increase in living standards. C) no economic growth and no increase in living standards. D) economic growth, but not an increase in living standards.
According to the long-run Phillips curve, in the long run monetary policy influences
a. inflation but not the unemployment rate; this is consistent with classical theory. b. inflation but not the unemployment rate; this is inconsistent with classical theory. c. the unemployment rate but not inflation; this is consistent with classical theory. d. the unemployment rate but not inflation; this is inconsistent with classical theory.