Critics of targeting a zero inflation rate believe that achieving zero inflation is almost impossible and the costs are too high
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent. In this case, the real after-tax interest rate is
A) 4.0 percent. B) .5 percent. C) 2.0 percent. D) 1.0 percent. E) 3.5 percent.
While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job with a considerably higher salary, you stopped purchasing hot dogs. For you, hot dogs are a
a. Complementary good b. Normal good c. Inferior good d. Substitute good
Which of the following is a valid criticism of unregulated monopoly?
a. Monopoly limits the options available to consumers. b. Relative to a competitive market, a monopolist generally will produce too great an output. c. Profit-maximizing monopolists will fail to produce at the lowest possible cost. d. A monopoly's output will often be more than if the market were competitive.
A movement along a demand curve from one price-quantity combination to another is called a:
A. change in demand. B. change in quantity demanded. C. change in quantity supplied. D. shift in the demand curve.