The Fed has announced it views its long term target for the inflation rate as:
A. 10 percent.
B. 5 percent.
C. 0 percent.
D. 2 percent.
Answer: D
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How do a sole proprietorship and a corporation differ?
A) Proprietorships have unlimited liability while corporations have limited liability. B) Corporations face more taxes than do proprietorships. C) Corporations can issue stocks and bonds, while proprietorships cannot. D) All of these are differences between the two types of businesses.
Under the liquidity premium theory, the expectation that future short-term rates will be constant results in a yield curve that
A) is flat. B) slopes upward. C) slopes downward. D) is flat, slopes upward, or slopes downward, depending on the size of the term premium at each maturity.
When the minimum wage is raised in a competitive market, ceteris paribus,
A. Workers are not affected by a minimum wage increase, only by decreases. B. All workers are better off. C. All workers are worse off. D. Some workers are better off and some are worse off.
If government is going to provide an environment for economic prosperity
What will be an ideal response?