Because of policy lags in monetary policy, the Fed ________.
A. should base decisions only on what has already happened
B. should only focus on fiscal policy
C. must try to anticipate changes in the economy before they happen
D. should attempt to follow a pro-cyclical policy
Answer: C
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In the legal sector, some practice areas have declined in recent years
For example, personal-injury and medical-malpractice cases have been undercut by state laws limiting class-action suits, out-of-state plaintiffs, and payouts on damages, and securities class-action litigation has declined in part because of a buoyant stock market. How does this affect the market for lawyers? A) The quantity of lawyers demanded decreases and this is represented by a movement along the demand curve. B) The supply of lawyers shifts to the left. C) The demand for lawyers shifts to the left. D) Both the demand and supply curves decrease.
Suppose Ms. Sanchez has a total income of $200,000, has a taxable income of $120,000, and pays $40,000 in taxes. Considering the information, what is Ms. Sanchez's effective tax rate?
A. 33.3 percent. B. 60.0 percent. C. 25.0 percent. D. 20.0 percent.
Laws that make it illegal for firms to conspire to raise prices or reduce production are known as
A. antimonopoly laws B. all of these answers C. anti-collusion laws D. pro-competition laws E. antitrust laws
The most frequently used tool of monetary policy is
A. the discount rate. B. reserve requirements. C. open market operations. D. moral suasion. E. credit controls.