Most modern monetarists believe that
A. the capitalist system is inherently unstable and unpredictable.
B. structural economic changes are major causes of business cycles.
C. inflation is explained by too rapid a rate of growth of the nominal money supply, resulting in "too much money chasing too few goods."
D. deflations are caused by contagious pessimism among investors.
C. inflation is explained by too rapid a rate of growth of the nominal money supply, resulting in "too much money chasing too few goods."
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The ________ the marginal tax rate, the ________ the effect on aggregate expenditure from a change in investment
A) smaller; smaller B) smaller; larger C) larger; smaller D) larger; larger E) More information about the effect on GDP is needed to answer the question.
Which of the following statements about commission systems of compensation is false?
A) During sluggish periods, an employer's payroll expenses will decline along with sales. B) If workers are paid on the basis of the number of units produced, they may become less concerned about quality. C) They increase the risk to workers because sometimes output declines for reasons not connected to the worker's effort. D) The lack of income stability will induce the more productive workers to leave in search of more secure employment.
In Figure 4-5 above, people would be trying to increase their holdings of money at
A) points A and E. B) points B, E, and C. C) point A. D) points A and B. E) point D.
Which of the following is NOT an example of a way in which microeconomic analysis can help in designing environmental policy?
A. Examining the trade-offs between ecological benefits of environmental legislation and its impacts on consumers' standard of living B. Lobbying consumers and firms to reduce consumption of energy C. Designing laws to provide incentives for firms to implement clean technologies in new vehicles D. Determining the optimal level of vehicle fuel efficiency standards