From the four asset bubbles discussed in this chapter, the one that has the smallest impact on the economy is
A) the 1927-29 U.S. stock market bubble.
B) the 1987-89 Japanese stock market bubble.
C) the 1996-2000 U.S. stock market bubble.
D) the 2001-2006 U.S. housing bubble.
C
You might also like to view...
The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:
A. $9,000. B. $100,000. C. $21,000. D. $30,000.
The rate at which a firm is able to substitute one input for another while keeping the level of output constant is called the
A) marginal rate of technical substitution. B) isoquant substitution rate. C) opportunity cost of inputs. D) input trade-off rate.
An increase in the capital stock causes labor productivity to
a. decrease and the standard of living to increase b. increase and the standard of living to decrease c. decrease and the standard of living to decrease d. increase while the standard of living remains constant e. increase and the standard of living to increase
Recently, there has been talk about reforming the tax system. Some advocate replacing the current income tax with a consumption tax. The income tax taxes interest earned on savings directly, while a consumption tax doesn't. The most likely effect on savings, if there is a shift to the consumption tax, would be to
a. raise interest rates b. shift the supply curve of loanable funds to the left c. encourage higher consumption d. shift the supply curve of loanable funds to the right e. discourage savings