"Ricardian equivalence" is the proposition that it does not matter whether government expenditure is financed by taxes or by issuing debt
Indicate whether the statement is true or false
TRUE
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A differential commodity tax is the same as an excise tax.
A. True B. False C. Uncertain
Based on the above table, an open market operation in which the Fed purchased $100,000 of government securities would
A) lead to a maximum potential expansion of the money supply of $1 million. B) create a reserve deficiency for the banking system. C) cause demand deposits to fall by $100,000. D) lead to a maximum potential expansion of the money supply of $100,000.
Rent Control
Read William Tucker's article on rent control (published by the Cato Institute). Questions: What was the original intent behind rent control? Why did voters in Boston decide to eliminate rent control? The author argues that rents are higher in cities in which rent control exists than in cities without rent control. Does this necessarily suggest that rent control raises the rental rate for housing? Is there another possible interpretation? Use a diagram containing demand and supply curves to illustrate the effects of rent control on the quantity of housing demanded and supplied. Briefly describe the "shadow market" for housing existing in New York City. How might the existence of this market account for the large difference between median gross rent and median advertised rent
If income is rising faster in Japan than in the United States, there will be an increase in the demand for the yen and a decrease in the demand for the dollar.
Answer the following statement true (T) or false (F)