Refer to the above figure. A movement from B to D would be a result of
A) an increase in the quantity of money in circulation.
B) an increase in the marginal income tax rate.
C) an increase in labor productivity.
D) an increase in government expenditures.
C
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The resource cost of inflation refers to
a. the opportunity cost of the resources spent coping with inflation b. the redistribution of resources due to inflation c. the lost purchasing power due to inflation d. the lost real income due to inflation e. the resources lost due to asking for higher nominal wage increase
The theory of liquidity preference is largely at odds with the basic ideas of supply and demand
a. True b. False Indicate whether the statement is true or false
Who once said that taxes are the price we pay for a civilized society?
a. Milton Friedman b. Theodore Roosevelt c. Arthur Laffer d. Oliver Wendell Holmes, Jr.
If an investor had a $25,000 long-term capital gain on a $100,000 investment from 1984 to 2010, her real rate of return was most likely
A. equal to the expected rate of inflation. B. equal to the nominal rate of inflation. C. zero. D. negative.