Which of the following is an example of a normative question?
A) What fraction of an income tax cut will be spent on imported goods?
B) How will an increase in the inheritance tax affect tax revenues?
C) How will an increase in unemployment benefits affect the unemployment rate?
D) Should Florida implement a state income tax to reduce its deficit?
D
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Which of the following solutions would a Keynesian economist suggest to avoid turning the recession of the late 20s into the depression of the 30s?
A. balance the federal budget B. decrease the available of unemployment compensation C. decrease the interest rate D. decrease government spending
The transaction motive for holding money
A. varies inversely with income. B. varies directly with the number of times one is paid annually. C. are used to make expected expenditures. D. are held for the same reasons that precautionary cash balances are held.
The key indicator of a country's living standard and economic well-being is:
A. real GDP. B. the interest rate. C. real GDP per person. D. nominal GDP per person.
Which of the following is true of a country with a managed exchange rate system?
A) The central bank of the country always pursues contractionary monetary policy. B) The current account balance of the country is always positive. C) The current account balance of the country is always negative. D) The central bank of the country actively intervenes to influence the exchange rate.