Assume that Michael is interested in buying a lawn mower. Right now, interest rates are very high, but he believes they will soon start to fall. If Michael purchases the lawn mower today, we know that
a. he was concerned about future inflation.
b. the current inflation rate was low.
c. he paid an inflationary premium.
d. he had a strong, positive rate of time preference.
D
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Capital flows between countries are smaller than in past decades in absolute terms
Indicate whether the statement is true or false
An excess benefit from corrective taxation arises because the tax revenues can be spent on compensation
a. True b. False
Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
Alexander Hamilton used the infant-industry argument to support trade restrictions
Indicate whether the statement is true or false