Most stock market experts agree that monetary policy
A) has virtually no impact on stock prices.
B) has a minor impact on stock prices.
C) has a significant impact on stock prices.
D) is the only determinant of stock prices.
C
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
According to the graph shown, when this economy is open to free trade without restriction, the amount imported is:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
A. 900.
B. 1250.
C. 650.
D. 1000.
Suppose the prices of goods X, Y, and Z are $4, $1, and $5, respectively, and the last unit purchased of good X has a marginal utility MUx = 16 utils. At the point of equilibrium, the marginal utility of the last unit purchased of goods Y and Z will be:
a. MUy = 16 utils and MUz = 16 utils, respectively. b. MUy = 8 utils and MUz = 2 utils, respectively. c. MUy = 4 utils and MUz = 20 utils, respectively. d. MUy = 2 utils and MUz = 4 utils, respectively. e. MUy = 12 utils and MUz = 20 utils, respectively.
Suppose there is proposed legislation that would subsidize the domestic commercial aircraft manufacturing industry in the U.S., to be funded with a new 1 percent national sales tax. Which of the following categories best fits this proposed legislation?
a. Traditional public goods legislation b. Special-interest legislation c. Competing-interest legislation d. Populist legislation