One way to minimize the deadweight loss resulting from a specific tax is to
a. tax only wealthy firms and individuals.
b. spread the tax over many goods and services.
c. tax goods for which either supply or demand is inelastic.
d. tax luxury items such as yachts and sports cars.
c
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The demand for money curve shifts rightward if
A) the price level increases. B) real GDP increases. C) the nominal interest rate increases. D) the real interest rate decreases.
Innovation is the application of new technology to a production process
Indicate whether the statement is true or false
The excess burden of an excise tax is
a. greater the more inelastic the supply curve. b. greater the more elastic the demand curve. c. smaller the more elastic the supply curve. d. greater the more inelastic the demand curve.
What is inflation targeting?
A. Committing the central bank to achieve an unannounced level of inflation B. A policy that attempts to reduce inflation to zero C. A target that links the Feds target for the federal funds rate to inflation