Which of the following is not a supply-side policy to cure inflation?
A. Incentives to encourage saving.
B. Reduced import barriers.
C. Lower interest rates.
D. Reduced marginal tax rates.
Answer: C
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If the ________ curve is relatively more unstable than the ________ curve, an interest rate target is preferred
A) IS; IS B) IS; LM C) LM; IS D) LM; LM
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current real exchange rate b. Current unemployment rate and labor force participation rate c. Annual inflation rate during the past year d. Current nominal exchange rate e. Percentage change in nominal GDP during the past year
A firms' total cost is $500 when its quantity is 80 units. Its total cost increases to $510 when its quantity increases to 81 units. What is the firm's marginal cost?
a. 6.25 b. 10 c. 5 d. 6.29 e. none of the above
In experiments testing game theory, cheap talk does not affect the outcome of a game.
Answer the following statement true (T) or false (F)