In the period of 1979 to 1982, if the Fed had set an interest rate target that was equal to the actual market interest rates that occurred, the:
A. target would have been a federal funds rate of zero percent.
B. economy would have been better off.
C. target would not have been politically acceptable.
D. inflation rate would have risen further.
Answer: C
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Who loses and who gains from the minimum wage?
A) Losers are all workers and gainers are all firms. B) Losers are all firms and gainers are all workers. C) Losers are all firms and some workers, while gainers are other workers. D) Gainers are some firms and all workers, while losers are some firms. E) Gainers are some firms and some workers, while losers are other firms and other workers.
Net exports is a positive number when:
A. a nation's exports of goods and services exceed its imports. B. depreciation is greater than gross private domestic investment. C. gross private domestic investment is greater than depreciation. D. a nation's imports of goods and services exceed its exports.
Using the above table, a unit tax of $2 is imposed on the product. How much of the tax is paid by the producer?
A. $3 B. $2 C. $1 D. unable to determine
If no foreign residents owned any of the U.S. public debt, then it would be TRUE that
A. there would be no interest payments on the public debt. B. U.S. residents would essentially owe the public debt to themselves. C. there would be no distributional consequences associates with he public debt. D. the public debt would naturally disappear over time.