What is one policy a government might use to redistribute income?
a. establish a set of price controls
b. strengthen education standards
c. institute a progressive tax system
d. raise interest rates on borrowing
c. institute a progressive tax system
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The figure above shows Clara's demand for CDs. If the price of a CD were to increase from $15 to $25, Clara's total consumer surplus for all the CDs she buys would
A) decrease by $40. B) remain unchanged. C) decrease by $90. D) increase by $80.
The monetary policy (MP) curve indicates the relationship between
A) the Federal Funds Rate and the real interest rate. B) the Federal Funds Rate and the inflation rate. C) the inflation rate and the expected inflation rate. D) the real interest rate the central bank sets and the inflation rate.
Class discrimination and racial discrimination are identical and involve identical groups of people
Indicate whether the statement is true or false
Which of the following would be classified as a personal consumption expenditure?
a. All of the following. b. Your purchase of a newly constructed house c. Your purchase of a preowned house. d. Your purchase of one share of Microsoft stock. e. Your purchase of this economics course.