Policies adopted by the Truman administration effectively avoided inflation during the Korean War. These policies included:
a. increased personal and corporate tax rates.
b. price and wage controls.
c. reduced purchases of government debt by the Federal Reserve.
d. discontinuance of the practice of "pegging" interest rates.
e. All of the above.
e. All of the above.
You might also like to view...
The government expenditure multiplier is used to determine the
A) amount aggregate supply is affected by a change in government expenditure. B) amount aggregate demand is affected by a change in government expenditure. C) extra scrutiny government action receives. D) amount private consumption is decreased by government expenditure. E) extent to which automatic stabilizers must be changed in order to avoid recessions.
If regulators force a natural monopoly to price as a perfectly competitive firm would, the natural monopolist
A) will experience a lower marginal cost. B) will earn an economic loss. C) will expand its output. D) will experience a rise in long-term average costs.
Along an indifference curve, as the consumer reduces the quantity of Good A in favor of more Good B the marginal rate of substitution of Good A for Good B will
A. rise. B. stay the same. C. fall. D. fall and eventually turn negative.
Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity demanded falls from 800 to 600 reams per day. Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range?
A) 0.003 B) 0.41 C) 2.43 D) 4