Capital and labor are distinct from productivity in that ________
A) productivity is independent of technology changes
B) productivity can only increase over time
C) productivity is subject to diminishing returns
D) capital and labor are subject to diminishing marginal returns
D
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As a possible approach to eliminating the government budget deficit, increasing taxes for everyone would
A) mean only a small increase in taxes. B) transfer more goods and services to the government sector. C) lead to a large increase in taxes for every worker. D) lead to an inflationary ga
The Jordanian government might consider devaluing its currency (the dinar)
a. if domestic inflation is high b. if Jordan has a large trade deficit c. if Jordan has achieved full employment d. if the dollar is appreciated e. if Jordan has a large trade surplus
Payroll taxes are a major financing tool at the federal level.
A. True B. False C. Uncertain
A problem that the Fed faces when it attempts to control the money supply is that
a. since the U.S. has a fractional-reserve banking system, the amount of money in the economy depends in part on the behavior of depositors and bankers.
b. the Fed has to get the approval of the U.S. Treasury Department whenever it uses any of its monetary policy tools.
c. while the Fed has the ability to change the money supply by a large amount, it does not have the ability to change it by a small amount.
d. federal legislation in the 1950s stripped the Fed of its power to act as a lender of last resort to banks.