The effect of the February 2008 tax rebate on spending was reduced due to ________
A) the simultaneous missteps in monetary policy
B) the negative impact of the policy on saving rates
C) the recognition that the rebate did not constitute a permanent change in income
D) the small size of the program
C
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Ceteris paribus, if more alternative forms of energy become available, we would expect the demand for gasoline to become:
A. more elastic. B. more inelastic. C. perfectly elastic. D. perfectly inelastic.
What is one reason why would corn production, which takes place in a perfectly competitive market, achieve an efficient use of resources?
A) because a perfectly competitive firm produces at the lowest possible long run average total cost B) because a perfectly competitive firm produces where marginal revenue exceeds marginal cost C) because a perfectly competitive firm is a price maker D) because the goal of a perfectly competitive firm is to profit maximize
"The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased
This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further." Evaluate this statement. A) The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluorescent light bulbs fell. B) The statement is false because it confuses the law of demand with the law of supply. C) The statement is false. A decrease in the price of compact fluorescent light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease. D) The statement is false because compact fluorescent light bulbs producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.
Assuming the same coupon rate and maturity length, the difference between the yield on a Treasury Inflation Indexed Security and the yield on a nonindexed Treasury security provides insight into
A) the nominal interest rate. B) the real interest rate. C) the nominal exchange rate. D) the expected inflation rate.