In the IS-MP model, when the Fed increases the real interest rate
A) the MP curve shifts up resulting in a decline in the output gap.
B) the MP curve shifts up resulting in an increase in the output gap.
C) the MP curve shifts down resulting in a decline in the output gap.
D) the MP curve shifts down resulting in an increase in the output gap.
A
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In the United States, the good or service given the most weight in the CPI basket when calculating the CPI is
A) food and beverages. B) taxes. C) medical care. D) housing. E) recreation.
The Civil Rights Act of 1964 in the United States led to _____
a. the introduction of the concept of discrimination. b. complete elimination of discrimination from the labor force. c. the creation of equal opportunities for men and women. d. the creation of equal opportunities for the members of different races. e. the establishment of a much clearer definition of discrimination.
One major tax loophole intended to help state & local governments raise funds is
A. fiscal federalism. B. tax exempt municipal bond interest. C. tax deductible mortgage interest. D. tax credits for solar panels.
Harry used to work in a launderette and earned $30 a day. After work, he normally had a chicken burger worth $5 at McDonalds. After his pay was lowered to $20 he would purchase a vegetable burger worth $3 instead of the $5 chicken burger. In this scenario, the vegetable burger is an example of a(n)
A. luxury good. B. complement good. C. inferior good. D. normal good.