Which of the following would be a useful way to increase the saving rate?
A) Tax breaks to increase the real return that savers receive
B) Increasing taxes if Ricardian equivalence holds
C) Increasing government spending
D) Increasing taxes on capital goods
A
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Use the following table to answer the next question. ItemBillions of DollarsCheckable deposits$597Small time deposits818Currency639Money-market mutual funds held by businesses1,045Savings deposits, including money-market deposit accounts2,866Money-market mutual funds held by individuals979The value of the money included in M2 but not counted in M1 is
A. $4,663 billion. B. $4,442 billion. C. $1,457 billion. D. $2,886 billion.
In the long run, firms in a perfectly competitive market choose to produce a quantity:
A. that earns zero economic profits. B. that does not cover minimum average variable costs. C. where marginal costs are less than average variable costs. D. where ATC and AVC are at their minimum values.
If there are external costs of production and firms do not have to account for these costs, then the firms will ________ and ________ compared with the efficient values.
A. overproduce; underprice B. underproduce; underprice C. underproduce; overprice D. overproduce; overprice
Expectations are hard to test even though economists know the model the public uses when forming expectations.
Answer the following statement true (T) or false (F)