The uncertainty costs of inflation cause ________ because ________
A) a decrease in investment and slower growth; people focus on the long run and not the short run
B) an increase in investment and faster growth; people focus on the short run and not the long run
C) a decrease in investment and slower growth; people increase their demand for money
D) a decrease in investment and slower growth; people focus on the short run and not the long run
E) an increase in investment and faster growth; people decrease their demand for money
D
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The figure above shows the supply curve for soda. The market price is $1.00 per soda. The marginal cost of the 20,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
The main argument against Fed independence is that
A) in a democracy elected officials should make public policy. B) monetary and fiscal policy would be easier to coordinate if the Fed were not independent. C) the Fed has proven irresponsible on many occasions. D) congressional control was tried during the 1960s and it worked well.
There is a significant positive relationship between ________ and __________
a. natural resource commodity exports, high levels of per capita GDP b. investment in capital, high levels of per capita GDP c. high levels of illiteracy, high levels of per capita GDP d. limited government recognition of land tenure and property ownership, high levels of per capita GDP
According to the text, the federal government spends the most taxpayer-provided funds regulating which area of the economy?
A. consumer safety and health B. the environment C. finance and banking D. transportation