Seignorage is also known as an inflation tax since ________
A) money balances lose value in real terms
B) inflation can be caused by rising energy costs
C) higher interest rates can crowd-out investment spending
D) budget deficits entail an increase in the size of the national debt
A
You might also like to view...
If the economy is operating at a 7 percent unemployment rate we are operating
A. inside the production possibilities curve. B. on the production possibilities curve. C. outside the production possibilities curve
Refer to the table below. If Stuffed Pies is currently producing 7 units of quality, to maximize profit, Stuffed Pies should ________ the units of quality.
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) not change
B) decrease by 50 percent
C) increase
D) decrease
Consider the following problems: overcrowded public highways, overfishing in the ocean, polluted air, and the near-extinction of the wild rhinoceros. What do these problems have in common?
a. Private markets could easily solve them if governments left the markets alone. b. They would all go away if the government sponsored an intensive public-information campaign. c. They are all the result of a failure to establish clear property rights over something of value. d. They are all the result of a failure of corrective taxes.
Governments use microeconomic models to
A) predict the impact of a policy before adopting it. B) consider the tradeoff between clean air and a high level of GDP. C) determine the tradeoff between equity and efficiency. D) All of the above.