Why is the Chair of the Fed Reserve considered by many to be the most powerful person in the economic world?
People in financial markets around the world dote on the Fed chairman's remarks with high intensity. The reason for all the attention is that, in the view of many economists, the Federal Reserve's decisions on interest rates are the single most important influence on aggregate demand?and hence on economic growth, unemployment, and inflation.
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The enjoyment or satisfaction people receive from consuming goods and services is called utility
Indicate whether the statement is true or false
Everything else held constant, an increase in marginal tax rates would likely have the effect of ________ the demand for municipal bonds, and ________ the demand for U.S. government bonds
A) increasing; increasing B) increasing; decreasing C) decreasing; increasing D) decreasing; decreasing
If tax rates were 100 percent, tax revenues would be _____
a. maximized b. minimized c. indeterminate d. the same if they were 50 percent
If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. positive B. break-even C. negative D. zero