In the 1970s, the Fed accommodated a(n)
a. adverse supply shock and so contributed to higher inflation.
b. adverse supply shock and so contributed to lower inflation.
c. favorable supply shock and so contributed to higher inflation.
d. favorable supply shock and so contributed to lower inflation.
a
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The income effect of a price increase for a Giffen good outweighs the substitution effect
Indicate whether the statement is true or false
Capital gains taxes are taxes on the profits from the rising market value of investments
a. True b. False Indicate whether the statement is true or false
To maintain their standard of living, most people rely on
a. government assistance. b. their personal savings. c. their labor earnings. d. rental income.
If a country experiences capital flight, which of the following curves shift right?
a. only the demand for loanable funds. b. only the supply of dollars in the market for foreign-currency exchange. c. only the net capital outflow curve and the supply of dollars in the market for foreign currency exchange. d. the demand for loanable funds, the net capital outflow curve, and the supply of dollars in the market for foreign currency exchange.