Inflation reduces the return to capital gains _____
a. only on large assets such as houses
b. because people have to pay taxes on nominal capital gains
c. when tax rates on capital gains are high
d. only under hyperinflation
b
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Why are generic pharmaceuticals significantly cheaper than name brand ones?
A.Generic pharmaceuticals are not protected by patent law, B.Brand name pharmaceuticals are not protected by patent law, C.The government allows knockoffs of patent-protected medicines in some cases. D.Generic pharmaceuticals are made by foreign companies that have lower costs.
When the domestic currency buys fewer units of foreign currency, the
A) nominal exchange rate rises. B) nominal exchange rate falls. C) real exchange rate rises. D) real exchange rate falls.
A consumption good that would NOT be counted in GDP would be:
A. the coffee Cyndi buys on her way to work in the morning. B. Cyndi's brand new car. C. the sunglasses Cyndi bought on clearance sale yesterday. D. Ford company’s purchase of steel.
A rising price level should shift the expenditure schedule
a. upward and decrease equilibrium real GDP. b. downward and increase equilibrium real GDP. c. downward and decrease equilibrium real GDP. d. upward and increase equilibrium real GDP.