If the MSB/MCA graph indicates that an emissions fee of $10 per unit would lead to the optimum level of emissions, but the government set a fee of $5 per unit, emissions would
A) not be reduced at all.
B) not occur at all.
C) be above the optimum level, but curtailed somewhat from what they would have been with no fee at all.
D) be above the optimum level by 50%.
E) be below the optimum level by 50%.
C
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The supply-side motivated tax cuts of 1981 during the Reagan administration were aimed at
A) balancing the federal budget. B) decreasing aggregate supply. C) increasing aggregate demand. D) increasing aggregate supply.
What did the European Central Bank (ECB) do to bolster the value of the euro in September 2000?
What will be an ideal response?
One requirement for an effective nominal anchor is ________
A) price stability B) credibility C) fixed exchange rates D) rational expectations
If the government were to decrease its spending, it would expect aggregate demand to:
A. rise, and thus GDP to fall. B. rise, and thus GDP to rise. C. fall, and thus GDP to rise. D. fall, and thus GDP to fall.