According to the rational expectations hypothesis, an individual's assessment of future economic performance
A) considers both past performance and current monetary and fiscal policy.
B) only considers past performance.
C) does not consider the impact of inflation.
D) does not consider past performance.
A
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Briefly explain how import tariffs can be part of a set of government policies to increase national well-being for small developing countries where government revenue is difficult to obtain by other means such as an income or sales tax.
What will be an ideal response?
One of the key income tax topics debated during the 2008 Presidential election was whether the
A. 1986 tax increases should be repealed in 2011. B. Iraqi oil revenues should be taxed by the U.S. to provide care for disabled Iraqi War veterans. C. 2003 tax cuts should be allowed to expire in 2011. D. national sales tax should be abolished and replaced with a single income tax rate of 21%.
The crowding-out effect describes how a government budget ________ ________ the real interest rate and thereby ________ equilibrium investment
A) surplus; raises; decreases B) surplus; lowers; decreases C) deficit; lowers; decreases D) deficit; lowers; increases E) deficit; raises; decreases
In which market structure is it not possible to practice price discrimination?
A) oligopoly B) monopolistic competition C) monopoly D) perfect competition