Critics of supply-side policies argue that the effects of tax cuts are too small to be effective policy
a. True
b. False
Indicate whether the statement is true or false
True
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Because transactions deposits can be withdrawn at any time, banks are exposed to
A) credit risk. B) liquidity risk. C) trading risk. D) interest risk.
If a government wants to distribute the burden of increased spending onto future generations it should:
a. Increase taxes b. Borrow from the public c. Print more money
Variable costs are:
A. costs that don't depend on the quantity of output produced. B. costs that depend on the quantity of output produced. C. one-time costs. D. None of these is true.
In the case of a moral-hazard problem, which of the following is not a way for the principal to encourage the agent to act more responsibly? The principal could
a. better monitor the agent. b. pay the agent above-equilibrium wages. c. delay payment to the agent. d. stop paying bonuses.