If the tax base is narrowed through an increase in exemptions, ______ in order to raise the same level of revenue
a. tax rates must be lowered
b. tax rates must be raised
c. tax expenditures must be increased
d. nothing must happen
b
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Among the distinguishing characteristics of different types of markets are
a. the number of firms in an industry. b. the presence or absence of product differentiation. c. the ability of any or all firms in an industry to influence market price. d. All of these.
Critics of the Federal Reserve maintain that, to correct the credibility problem of monetary policy, the Fed should:
a. tighten monetary policy. b. be required to maintain a growth rate of the money supply that is fixed by law. c. give more power to the Federal Open Market Committee. d. ignore public opinion and establish more discretionary power over monetary policy. e. merge with the U.S. Treasury and be dissolved as an independent agency.
If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:
a. inelastic. b. elastic. c. unitary elastic. d. perfectly inelastic.
In 2001, a prolonged period of deceased investment and production preceded a ______.
a. a depression b. a recession c. an expansion d. a recovery