Which of the following could the government do to decrease the costs of inflation without lowering the inflation rate?
a. Avoid unexpected changes in the inflation rate.
b. Rewrite the tax laws so that nominal gains were taxed instead of real gains.
c. Make policy that would discourage firms from issuing indexed bonds.
d. All of the above are correct.
a
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What is a mixed strategy? Describe a mixed strategy that would be a Nash equilibrium for the Copycat Game, and indicate why neither player would want to deviate from that mixed strategy.
What will be an ideal response?
The interpretation of the slope coefficient in the model ln(Yi) = ?0 + ?1Xi + ui is as follows:
A) a 1% change in X is associated with a ?1 % change in Y. B) a change in X by one unit is associated with a ?1 change in Y. C) a change in X by one unit is associated with a 100 ?1 % change in Y. D) a 1% change in X is associated with a change in Y of 0.01 ?1.
Which of the following would be an example of a transaction later regretted because it was made with incomplete information?
A. Sue purchased a lottery ticket that did not win her any money. B. Larry moved to a new apartment but later decided it was too small for his needs. C. Tim bought products from a seller that knew they were defective. D. All of these are good examples of incomplete information.
Suppose a tax on sellers has been imposed in the graph shown. The amount of deadweight loss generated by this tax is:
A. $0.
B. $80.
C. $160.
D. $129.50