According to the short-run Phillips curve, if the central bank increases the money supply, then
a. inflation and unemployment will both fall.
b. inflation and unemployment will both rise.
c. inflation will fall and unemployment will rise.
d. inflation will rise and unemployment will fall.
d
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The welfare cost of taxation _____
a. occurs because individuals try to avoid the tax to some degree b. is not the same thing as the excess burden of taxation c. occurs because individuals refuse to pay the tax d. cannot, in theory, be calculated
All of the following are cited as factors in explaining U.S. competitiveness EXCEPT
A) the open U.S. financial system. B) economic restructuring. C) investments in information technology. D) the decline of entrepreneurship.
Which of the following would be illegal under the Robinson-Patman Act? a. Ford and General Motors meet to fix the price of cars. b. Computer makers form a cartel. c. General Mills and Kelloggs decide to merge. d. Exxon sells gas at a higher wholesale price to independent gas retailers than to Exxon retailers
e. Exxon Oil and Mobil Oil elect the same person to their boards of directors.
The preferred asset ratio "U/D" affects the M2 money multiplier because:
a. Actually, it is does not affect the M2 money multiplier because customary reserves are not a part of M2. b. Funds kept in customary reserves reduce financial institution's ability to lend. c. U/D affects the required reserves financial institutions must hold and thereby affects the banking system's lending ability. d. U/D determines the funds flowing into near-money accounts. e. None of the above.