Rent controls encourage investment in housing because they bring stability to the market.
Answer the following statement true (T) or false (F)
False
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The multiplier for investment represents the ratio of the change in income to the change in investment spending
Indicate whether the statement is true or false
M2 consists of: a. M1 plus savings accounts, small time deposits, money market mutual funds, and miscellaneous near-monies. b. coins, currency, and checkable deposits only
c. only near-monies. d. M1 plus time deposits only. e. M1 plus money market mutual funds only.
When the economy is already operating at nearly full capacity, further fiscal or monetary stimulus will likely:
a. soften inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity. b. trigger inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity. c. soften inflationary pressures in sectors already at capacity, and decreasing employment in sectors with excess capacity. d. trigger inflationary pressures in sectors already at capacity, and increasing employment in sectors with excess capacity.
Why does the government index income tax rates to inflation?
a. To avoid people paying less in taxes when there is inflation b. To avoid people moving to a higher tax bracket when their purchasing power has increased c. To avoid people paying less in taxes when their real purchasing power has not increased d. To avoid people paying more in taxes when their real purchasing power has not increased