Buying financial assets from banks and other financial institutions in order to stimulate the economy is referred to as:
A. money easing.
B. precommitment policy.
C. quantitative easing.
D. operation twist.
Answer: C
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A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter.
Answer the following statement true (T) or false (F)
Which of the following do not suffer the costs of inflation?
A) firms that have to devote more time and labor to raising prices B) persons on fixed incomes C) persons whose incomes rise more rapidly than inflation D) an investor that has to pay higher taxes because of the inflation
Which of the following is an important ingredient of efficient economic organization?
a. high marginal tax rates b. competitive markets c. rapid increases in the money supply d. imposition of high tariffs that will protect domestic producers from the ravages of foreign competition
Indexing seeks to reduce the social costs of inflation.
Answer the following statement true (T) or false (F)