Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) sell Treasury bills B) decrease the required-reserve ratio
C) buy Treasury bills D) decrease income taxes
A
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If firms are producing an output greater than planned expenditures, these firms will cut back on production, which decreases GDP
Indicate whether the statement is true or false
Refer to the Article Summary. The article discusses wealth inequality, and for some people this means a more equitable distribution of wealth is needed in the economy
Would an equitable distribution of wealth necessarily be the most efficient distribution of wealth? A) No, it is impossible to have an economically efficient distribution which is also an equitable distribution. B) Yes, equitable and efficient are two different words which have the same definition. C) Yes, in order for the distribution to be equitable, it must also be efficient. D) No, an economically efficient distribution of wealth would not necessarily be equitable.
Efficiency of the median voter model outcome occurs when _____
a. Lindahl pricing is employed. b. a head tax is used to finance the policy c. progressive taxation is used to finance government d. special interests are non-existent
A tennis pro charges $15 per hour for tennis lessons for children and $30 per hour for tennis lessons for adults. The tennis pro is practicing
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination. E) fifth-degree price discrimination.