The Fed's low short-term interest rate policy of 2002 to 2004 encouraged decision makers to
What will be an ideal response?
borrow more and increase their purchases of housing.
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The Kennedy Tax Cut, enacted in 1964 after his death, was the first supply-side tax cut used in U.S. history. Its intent was to stimulate the economy by reducing tax rates in order to do what?
(a) Reduce supply (b) Increase production, employment and disposable income (c) Increase government spending (d) Increase the money supply
Tax loopholes
a. reduce the progressivity of the federal income tax. b. encourage particular patterns of behavior. c. include exemption of interest earned on municipal bonds. d. All of the above are correct.
In a perfectly competitive industry, which of the following is a market signal to resource owners?
A. quality of goods B. the level of exports in the country C. economic profits D. the level of subsidies the industry receives
Wayne did not look for another job after he lost his current job. As a result the
A. labor force immediately decreased. B. unemployment rate remains constant for as long as he does not look for another job. C. labor force increased. D. unemployment rate eventually decreased.