From 1979 to 1982, the Fed targeted bank reserves as the monetary policy tool. One side effect of this strategy was:
A. the inflation rate increased to over 18 percent in 1983.
B. inflation remained high for most of the 1980's.
C. many banks failed that otherwise may not have.
D. interest rates rose very high.
Answer: D
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The effects of a per-unit tax imposed on sales of an industry's product would likely include
A) a lower product price at any amount of the product supplied. B) a leftward shift of the market supply curve for the product. C) a leftward movement along the market supply curve for the product. D) none of the above.
A theory is an untested assertion of alleged fact.
Answer the following statement true (T) or false (F)
According to the Organization for Economic Cooperation and Development (OECD):
A. the United States has the most progressive tax system among OECD nations. B. the United States has the least progressive tax system among OECD nations. C. the U.S. tax system has the same degree of progressivity as those of nations such as Canada, Japan, and France. D. the U.S. tax system has the same degree of progressivity as those of many developing nations.
If the single-input producer choice set is convex, the marginal product of labor curve must have a negative slope that is getting steeper with increases in labor input.
Answer the following statement true (T) or false (F)