In 2016 the largest U.S. cash transfer program was
A. Medicaid.
B. Social Security.
C. Food stamps.
D. TANF.
Answer: B
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Given a downward sloping demand curve, a tax on the supply of a good will result in an increase in equilibrium price that is less than the amount of the tax.
Answer the following statement true (T) or false (F)
If the Fed wanted to decrease the money supply, one way to make an enormous impact would be to:
A. increase the reserve requirement, which would decrease the money multiplier. B. decrease the reserve requirement, which would decrease the money multiplier. C. increase the reserve requirement, which would increase the money multiplier. D. decrease the reserve requirement, which would increase the money multiplier.
The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?
a. inflation and unemployment b. prosperity and wages c. time and leisure d. labor and leisure
Demand-pull inflation may be caused by:
a) An increase in costs b) A reduction in interest rates c) A reduction in government spending d) An outward shift in aggregate supply