Explanations for the low U.S. saving rate include all of the following EXCEPT:
A. large capital gains in the stock market.
B. low real interest rates relative to the rest of the world.
C. government programs that provide income for the elderly.
D. low down payments required to purchase homes.
Answer: B
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The benefit principle states that_____
a. people who benefit from the rule of law should pay taxes b. people who benefit from Social Security should voter for it c. people who benefit from a government activity should pay for it in proportion to their wealth d. people who benefit from a government activity should be those who pay for it
If the stock market booms, then
a. aggregate demand increases, which the Fed could offset by increasing the money supply. b. aggregate supply increases, which the Fed could offset by increasing the money supply. c. aggregate demand increases, which the Fed could offset by decreasing the money supply. d. aggregate supply increases, which the Fed could offset by decreasing the money supply.
A key issue in the present disagreement between Keynesian and monetarist economists is whether
A. monetary policy can bring the economy to full employment. B. the economy is better off with policymakers adopting a strict rule or using their discretion to set policies. C. monetary policy can influence interest rates. D. fiscal policy involves the use of taxation.
An industry consists of six firms with annual sales of $300, $500, $400, $700, $600, and $600. According to the general rule of thumb, the HHI of this industry implies that the market structure is:
A. noncompetitive. B. monopoly. C. noninclusive. D. competitive.