During World War II, the Fed in effect relinquished its control of monetary policy through its policy of
A) continually lowering reserve requirements.
B) continually raising reserve requirements.
C) pegging interest rates.
D) targeting free reserves.
C
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How is the sacrifice ratio measured? How big is the sacrifice ratio in the United States? In other countries? What problems are there in measuring the sacrifice ratio?
What will be an ideal response?
If a price ceiling is imposed,
a. the market supply curve shifts to the right b. the market demand curve shifts to the left c. an excess demand for the good results d. the government would be required to buy the excess supply of the good e. the equilibrium price falls below the price level the government wishes to achieve
When Ukraine trades with Italy,
a. both countries are likely made better off. b. only Italy benefits since Ukraine can produce all goods at a higher level of quality than Italy. c. only Ukraine benefits since Italy's low wages guarantee that Italian firms will be profitable regardless of trade. d. neither country will benefit since Ukraine is more efficient than Italy in the production of all goods.
By looking at the graph for payroll tax, we can see that the wages a worker actually gets paid after the payroll tax is ______.
a. lower than they would receive without the payroll tax
b. higher than it was before the payroll tax
c. immune to any effects of the payroll tax
d. reduced by a small fraction of the firm’s share of payroll tax