With a large and growing deficit, the Fed may face pressure from the government to

A) decrease the inflation tax.
B) decrease the quantity of money to keep the value of money high.
C) keep interest rates low, but the Fed risks inflation by doing so.
D) increase the velocity of circulation.
E) increase the quantity of money to prevent inflation.


C

Economics

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The standard deduction for two individuals is higher than the standard deduction for a married couple, causing a "marriage tax."

A. True B. False C. Uncertain

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As a source of funds for nonfinancial businesses, stocks are relatively more important in

A) the United States. B) Germany. C) Japan. D) Canada.

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Why do many economists believe that money affects output? What is the empirical evidence in support of that belief?

What will be an ideal response?

Economics

To get the first order conditions in a profit maximization problem, we must ________

A) set the profit function equal to zero and solve for the production function B) set the partial derivatives of the production function equal to zero and solve for the price C) set the partial derivative of the profit function equal to zero and solve for the marginal products D) set the production function equal to zero and solve for the marginal products E) none of the above

Economics