Which of the following is a market incentive to discourage pollution?
A. User charges and government regulation.
B. Emission charges and user charges.
C. Command-and-control options.
D. The greenhouse effect.
Answer: B
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Lower real income ________ the demand for money and a lower price level ________ the demand for money.
A. decreases; decreases B. increases; increases C. increases; does not change D. increases; decreases
The government can close an inflationary gap by reducing government spending
Indicate whether the statement is true or false
Under rent control, tenants can expect
a. lower rent and higher quality housing. b. lower rent and lower quality housing. c. higher rent and a shortage of rental housing. d. higher rent and a surplus of rental housing.
The Fisher effect is crucial for understanding changes over time in
a. the nominal interest rate. b. the real interest rate. c. the inflation rate. d. the unemployment rate.