How much revenue will the government raise from the tax?
A. $70
B. $140
C. $210
D. $280
A. $70
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High inflation
A) makes money function less well as a store of value. B) lowers the price level. C) leads to a more correct allocation of resources. D) decreases uncertainty. E) makes it easier to use money as a standard of account.
Which of the following can create a deadweight loss?
i. price supports ii. price floor iii. price ceiling A) i only B) i and iii C) ii and iii D) i, ii and iii E) i and ii
In the monetary small open-economy model with a fixed exchange rate, a temporary decrease in domestic total factor productivity in the absence of any other shocks
A) increases the current account surplus and increases the domestic money supply. B) increases the current account surplus and decreases the domestic money supply. C) increases the domestic money supply and decreases the current account surplus. D) decreases the domestic money supply and decreases the current account surplus.
Rational expectations imply
a. markets always clear. b. that prices are "sticky" c. policy that is unpredictable is irrelevant to economic outcomes. d. both a and c. e. None of the above.