This year Terrance earned $3,000 more than last year. As a result, he received $2,500 less in government transfers. Therefore, Terrance's implicit marginal tax rate is about
a. 16 percent
b. 25 percent
c. 66 percent
d. 83 percent
D
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An increase in aggregate demand results in
A) a higher unemployment rate and a lower price level. B) a decrease in real GDP and a decrease in the price level. C) a lower unemployment rate and a lower price level. D) an increase in real GDP and a decrease in the price level. E) a lower unemployment rate and a higher price level.
"Subordinated" debt is one form of __________ debt
A) mezzanine B) uncollateralized C) zero-coupon D) risk-free
Which of the following best illustrates perfect competition?
a. Wheat farming. b. Orange growers setting quotas under the Sunkist cooperative. c. General Motors advertising campaign for its cars. d. All of these.
The ________ hypothesis suggests that errors in forecasting future inflation rates are due to random, unpredictable events.
A. chaos-theory B. stagflation C. rational-expectations D. Friedman