If consumer tastes are changing more in favor of the consumption of a particular good the
a. market demand curve will shift to the left.
b. consumer will move up a given demand curve, decreasing the quantity demanded.
c. consumer would move down a given demand curve, decreasing the quantity demanded.
d. consumer would move down a given demand curve, increasing the quantity demanded.
e. market demand curve would shift to the right.
E
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One problem with using monetary policy to address "bubbles" in asset markets is that:
A. monetary policy is well-suited for addressing the problem of inappropriately high asset prices. B. reducing the real interest rate to deal with the bubble could lead to inflation. C. the Federal Reserve is not interested in stabilizing output. D. doing so presupposes that the Federal Reserve is better than financial-market professionals at identifying bubbles.
Tax incidence:
A. depends on the relative elasticity of the supply and demand curves in a market. B. depends on whether it is a buyers tax or sellers tax that is being imposed. C. depends on the amount of tax revenue generated once administrative burdens are taken into account. D. depends on whether the tax revenue is greater than the deadweight loss caused by the tax.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
Social Security benefits could be reduced in each of the following ways except
A. cutting the promised monthly benefit. B. reducing the degree to which benefits are adjusted for inflation. C. investing the trust fund in the stock market. D. increasing the retirement age.