Everything else held constant, if a central bank makes an unsterilized sale of foreign assets, then the domestic money supply will ________ and the domestic currency will ________
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
C
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A pollution tax that is exactly equal to marginal external cost will shift the market supply curve to the social-cost supply curve. This tax will thus correct the market inefficiency due to negative externalities by causing price to reflect the full marginal cost of production
a. True b. False Indicate whether the statement is true or false
The macroeconomic policy planner's job is made difficult because of
a. inaccurate multiplier estimates. b. timing problems. c. disagreements over potential GDP. d. uncertain forecasts. e. All of the above are correct.
In 2009 Congress passed legislation providing states with funds to build roads and bridges. It also instituted tax cuts. Which of these shifts aggregate demand right?
a. only the increased funding for states b. only the tax cuts c. both the increased funding for states and the tax cuts d. neither the increased funding for states nor the tax cuts
Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are:
A. limited to those whose income is less than 133 percent of the federal poverty line. B. limited to those whose income is at or below the federal poverty line. C. provided to some individuals in the upper half of the income distribution. D. a fixed amount per person for those eligible to receive the subsidies.