When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease.
B. prices, causing them to definitely rise.
C. output, causing it to definitely increase.
D. prices, causing them to definitely fall.
Answer: A
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The federal personal income tax
A. is actually less progressive than official tax schedules would indicate because of various tax exemptions and deductions. B. has become extremely progressive as a result of taxpayers' being pushed into higher tax brackets by higher income levels. C. has experienced substantial increases in rates during the past two years. D. has a regressive structure.
According to Keynes' theory of money demand, a low interest rate increases the likelihood of a capital ________ and ______ the interest elasticity of money demand
a. gain on bonds; reduces. b. gain on money; increases. c. loss on bonds; reduces. d. loss on money; increases. e. none of the above.
_____ illustrates the speculative temper of the 1920s
a. The Ponzi scheme b. The New York pyramid scandal c. The Florida Land Boom d. Both a and b are correct. e. Both a and c are correct.
A graph with a positive slope indicates that the variables depicted on the axes move in the same directions
a. True b. False Indicate whether the statement is true or false