Suppose a report was released today that showed the Euro-Zone inflation rate is running above the European Central Bank's inflation rate target
This leads people to expect that the European Central Bank will enact contractionary policy in the near future. Everything else held constant, the release of this report would immediately cause the demand for U.S. assets to ________ and the U.S. dollar will ________. A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
A
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If extraction technology continues to improve over time,
A) the price of crude oil can continue to fall or stay steady. B) the price of crude oil will increase despite any attempts to stem demand. C) the price of crude oil will only fall if sufficient government taxation is implemented. D) the price of crude oil will only fall if sufficient demand declines are arranged.
The national debt
A) is the difference between total government revenues and government expenditures. B) is the sum of all past federal deficits plus any surpluses. C) is the sum of all past federal deficits less any surpluses. D) grows when government spending increases.
A tax that fell very heavily on the rich and the upper middle class might shift the Lorenz curve from
A. J to K.
B. K to L.
C. L to K.
D. I to J.
Table 22.1Assume an apple farmer incurs the following costs and revenuesFertilizer$200Seeds$75Water$250Wages$750Property taxes$600Interest payments on borrowed funds$1,200Sales of apples$4,000Suppose the entrepreneur could earn $1,000 as an employee elsewhere. This means the economic profit is
A. -$75. B. $0. C. -$925. D. -$1,000.