The type of monetary policy that is used in Canada, New Zealand, and the United Kingdom is
A) monetary targeting.
B) inflation targeting.
C) targeting with an implicit nominal anchor.
D) interest-rate targeting.
B
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For a firm in monopolistic competition, define efficient scale and excess capacity. Briefly explain each
What will be an ideal response?
A study of New York City (NYC) tax rates concluded that taxes on the nonmanufacturing sector should be higher since that sector has fewer alternatives. Manufacturers are more mobile and may move to avoid higher taxes. This means that
A. nonmanufacturing firms have a more elastic demand for the NYC locations. B. manufacturing firms have an inelastic demand for the NYC locations. C. nonmanufacturing firms have relatively inelastic demand for the NYC locations. D. nonmanufacturing demand for the NYC locations is perfectly elastic.
"A reduction in the rate at which stock dividends are taxed will lead to greater investment in the stock market." This is an example of: a. a positive economic statement
b. a negative economic statement. c. the fallacy of composition. d. a normative economic statement.
Though Nash games are noncooperative, a cooperative outcome is more likely if
A. firms can easily monitor the outcomes from cooperation. B. firms can easily monitor the outcomes from rivals' defection. C. firms expect the market relationship to last only for a short time. D. the long-run gains are smaller than the short-run gains.