A(n) ________ in U.S. interest rates will cause a decrease in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
D
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_____ is the largest social insurance program in the U.S
a. Medicaid b. The food stamp program c. Supplementary security insurance d. The Head Start program e. Old-Age, Survivors, and Disability Insurance
What is the role of price controls in the market economy?
a) Price controls are used to make markets more efficient b) Price controls are a tool used by business firms to fix prices c) Price controls are nearly always effective in eliminating shortages d) Price controls are used by governments to reallocate resources more equitably
The downside to targeting specific activities rather than the externality itself is:
A. any one activity is likely to not make a significant difference in the presence of an externality. B. it risks misaligning the incentives that producers and consumers face with the goal of minimizing the externality. C. it requires a number of different activities to be identified and several different policies to be written, which can be cumbersome and difficult to manage. D. All of these statements are true.
The federal government could stimulate investment spending by
A. phasing out the depreciation allowance on corporate income taxes. B. reducing subsidies to businesses. C. reinstating the windfall profits tax. D. reducing the tax rate on capital gains.