If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be
A. two times the tax rate.
B. close to the poverty line.
C. close to the median income of all families.
D. above the poverty line.
Answer: B
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The only way that the family can consume more and enjoy a higher standard of living is to:
A. increase the amount each person produces. B. decrease the amount each person produces. C. increase how many people are in the family. D. increase both how many people are in the family, and the amount each one produces.
If the Federal Reserve Banks goal was to use open market operations to expand the economy it could move from:
A. MS1 to MS3
B. MS3 to MS2
C. MS4 to MS3
D. MS2 to MS1
To be effective, pure bundling requires firms to be able to separate consumers into separate markets
Indicate whether the statement is true or false
The real interest rate on a loan
a. is the amount that the consumer agrees to pay b. is always the same as the nominal rate c. is always greater than the nominal rate d. is only of concern when serious inflation occurs e. is the percentage increase in the lender's purchasing power that results from making the loan