Answer the following questions true (T) or false (F)
1. If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided.
2. The problem associated with inflation is that as prices rise, consumers can no longer afford to buy as many goods and services, since nominal income usually does not increase with inflation.
3. Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated.
1. TRUE
2. FALSE
3. TRUE
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Whenever average cost is increasing, marginal cost must also be increasing.
Answer the following statement true (T) or false (F)
The assembly line and interchangeable parts were first used by Henry Ford
Indicate whether the statement is true or false
?Kites /hourSnowboards /hourJesse81April123
Based on the data in Table 3.1:
A. Jesse should specialize in painting kites and trade for snowboards. B. Jesse should specialize in painting snowboards and trade for kites. C. April should specialize in both goods. D. Jesse should specialize in both goods.
What is meant by revenue-neutral tax reform? How might agreeing to revenue-neutral tax reform help lead to a more efficient tax system?
What will be an ideal response?