If the expected future exchange rate rises, the currency's
A) quantity supplied increases.
B) supply decreases.
C) supply increases.
D) exchange rate falls.
B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
In practice, turning horizontal and vertical equity into tax law
A. hasn’t been tried. B. has been fairly easy. C. is resisted by nearly all taxpayers. D. has been extremely difficult.
?A process {yt} is a martingale if _____ is equal toytfor allt? 0.
A. ?E(yt+1|yt, yt-1, …, y0) B. ?E(yt+1|yt-1, …,y0) C. ?E(yt+1, yt| yt-1, …, y0) D. ?E(yt+1, yt| yt-1, yt-2)
Inflation rates over the last 40 years have generally:
A. decreased around the world. B. unchanged for developing nations and decreased for developed nations. C. increased around the world. D. decreased for developing nations and increased for developed nations.