Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to fall.
b. M2 money supply to fall.
c. M2 money multiplier to remain the same.
d. M2 money supply to rise.
.C
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If an item has several good substitutes, the demand curve for that item is likely to be
A) relatively inelastic. B) relatively elastic. C) perfectly inelastic. D) unit elastic.
The supply-side motivated tax cuts of 1981 during the Reagan administration were aimed at:
A. increasing aggregate demand. B. increasing aggregate supply. C. decreasing aggregate supply. D. balancing the federal budget.
Which of the following was not an objection raised by opponents of the Patient Protection and Affordable Care Act?
A. The revenue generated by the new taxes in the PPACA would be insufficient to cover costs of the program. B. The PPACA moves the United States closer to creating a national health insurance system with nonprice rationing of health care. C. The subsidies would lead to higher prices and increased consumption of health care. D. The percentage of health care spending coming directly out of consumers' pockets would increase.
Refer to the information provided in Figure 28.8 below to answer the question(s) that follow.
Figure 28.8Refer to Figure 28.8. Expected inflation at Point C equals
A. 4%. B. 5%. C. 6%. D. cannot be determined from the figure.