In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Increase government spending.
b. Raise the discount rate for banks.
c. Raise tax rates.
d. Increase reserve requirements.
e. All of the above
.A
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Indicate whether the statement is true or false
Which of the following is not an important stock exchange in the United States?
a. New York Stock Exchange b. American Stock Exchange c. Chicago Mercantile Exchange d. NASDAQ
The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
A. fall on sellers. B. fall on buyers. C. fall equally on both buyers and sellers. D. create a larger deadweight loss (or excess burden).
Answer the following statements true (T) or false (F)
1) During the past ten years, the annual rate of inflation in the United States has averaged less than 1 percent. 2) If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent. 3) Unanticipated inflation benefits debtors at the expense of creditors. 4) Unanticipated inflation helps some groups in the economy. 5) If the nominal interest rate is 8 percent and the real interest rate is 5 percent, then the inflation premium is 13 percent.