In 1975, Congress passed a tax rebate to spur consumer spending. Consumers:
a. spent the entire amount of the tax savings, boosting the economy, as planned
b. did not spend any of the amount of the tax savings
c. saved a substantial share of the tax savings and spent the rest
d. saved a small portion of the tax savings, and spent the rest
c
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The CPI stands for
A) Citizens Paying Index. B) Corporate Pricing Index. C) Consumer Paying Index. D) Consumer Price Index. E) Corporate/Consumer Payment Index.
If a firm in a perfectly competitive market faces the curves in the graph shown and observes a market price of $16, the firm:
A. can make positive profits by producing less than 43 units.
B. can make positive profits by producing where MC = MR.
C. cannot make positive profits and should shut down in the short run.
D. should continue to operate in the short run, but plan to exit in the long run.
When a monopolist's marginal cost of production is zero:
a. the deadweight loss is reduced. b. production is lower than if marginal cost were positive. c. the price charged is higher than if marginal cost were positive. d. maximizing profit is same as maximizing revenue.
The key to the success of forward guidance as a monetary policy tool is:
A. credibility. B. timing. C. transparency. D. a favorable exchange rate.