Policies that make it more difficult to fire an employee likely lead to:
A. greater unemployment, because employers will be more hesitant to hire someone.
B. greater unemployment, because employees will quit more often.
C. less unemployment, because employers will not be able to fire as many people.
D. less unemployment, because everyone will value their job more.
Answer: A
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Why do you suppose that taxes are often used in place of effluent charges in order to combat pollution?
What will be an ideal response?
Germany could have avoided the high inflation that it experienced in the 1920s by
a. not directing so many of its resources toward preparation for World War II. b. not increasing taxes so much on the German middle class. c. not allowing the quantity of money to increase so rapidly. d. using government policies to stimulate the economy more so than what was done.
If the Fed chooses to target the money supply, it
a. cannot at the same time control the interest rate b. can only do so if the interest rate is targeted as well c. gives up the opportunity of determining the legal reserve requirement d. gives up the opportunity of determining the discount rate e. gives up the opportunity of determining the federal funds rate
What type of relationship does expected profitability have with respect to Investment spending?
A. Positive B. Constant C. Negative D. Indirect