The effectiveness lag for monetary policy is short
a. True
b. False
Indicate whether the statement is true or false
False
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Taxes can yield the efficient level of pollution if the tax is set equal to the
A) marginal benefit of pollution. B) marginal external cost of the pollution. C) marginal social cost of the pollution. D) equilibrium price of the pollution.
The perfectly competitive firm's marginal revenue curve is
A) exactly the same as the marginal cost curve. B) downward-sloping, at twice the (negative) slope of the market demand curve. C) vertical. D) horizontal. E) upward-sloping.
The precautionary demand for money:
a. varies inversely with the income level. b. varies inversely with the price level. c. is used as an insurance agent against unexpected needs. d. states that nominal income must exceed real income. e. is a classical concept in monetary theory.
Suppose your grandfather put $10,000 in the bank in 1965 at an annual interest rate of 7%. Using the Rule of 70, approximately how large should the bank balance be in 2015?
a. $50,000 b. $60,000 c. $80,000 d. $320,000