Having a nominal inflation target for monetary growth can pose a difficulty because:
A) inflation is very challenging to measure.
B) inflation can be higher or lower, depending on the growth rate of real GDP.
C) most agree that inflation targets are completely unrelated to monetary growth.
D) monetary growth can be affected by political pressure and other noneconomic factors.
Ans: B) inflation can be higher or lower, depending on the growth rate of real GDP.
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List and describe the two government agencies that enforce antitrust laws in the United States
What will be an ideal response?
The marginal tax rate shows
A) the percentage of income which a typical family pays in tax. B) the average rate of taxation in the economy. C) the deductions which are permitted for child care and medical expenses. D) the extra tax due on an extra dollar of income.
For a given significance level, if the calculated value of the Durbin Watson statistic lies between the lower critical value and the upper critical value, _____.
A. the hypothesis of no serial correlation is accepted B. the hypothesis of no serial correlation is rejected C. the test is inconclusive D. the hypothesis of heteroskedasticity is accepted
Suppose there is a simultaneous increase in demand and increase in supply. Given this information, we know with certainty that
A) both the equilibrium price and the equilibrium quantity will increase. B) the equilibrium price will increase, and the equilibrium quantity will increase. C) the equilibrium quantity will increase. D) the equilibrium price will increase.