A policy maker who is concerned with the rate of inflation may not choose to reduce it because ________.
A. the government can only affect unemployment, not the rate of inflation
B. reducing the rate of inflation means that the unemployment rate will increase
C. reducing the rate of inflation means reducing taxes
D. reducing the rate of inflation requires an increase in government spending
Answer: B
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Suppose that you can schedule a worker up to four hours per day. The benefit function is given by B(H) = 500H - 22.5H2 and the cost function is given by C(H) = 100 + 15H2. The corresponding marginal benefit and marginal cost functions are given by MB(H) = 500 - 45H and MC(H) = 100 + 30H. What is the best choice of hours for this worker?
What will be an ideal response?
Marginal analysis is useful to a firm that seeks to
A. maximize its profits, but not minimize its losses. B. minimize its losses, but not maximize its profits. C. both maximize its profits and minimize its losses. D. neither maximize its profits nor minimize its losses.
Should all pollution be banned? Why might some level of pollution be economically efficient?
Please provide the best answer for the statement.
A bank receives a demand deposit of $3,000 . The bank loans out $1,800 of this deposit and increases its excess reserves by $300 . What is the required reserve ratio?
a. 10% b. 30% c. 40% d. 60%