Which of the following is an example of an automatic stabilizer?
A. Congress legislates lower tax rates to increase consumption and investment.
B. Tax rates are increased during a recession to maintain a balanced budget.
C. A regressive income tax system reduces tax revenues (as a share of income) as income expands.
D. Revenues from the corporate income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.
Answer: D
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Is faster economic growth unambiguously better?
A. No, because growth has an opportunity cost. B. No, because growth serves no useful purpose. C. Yes, because more goods and services are always better. D. Yes, because it expands the production possibilities of an economy. E. Uncertain, economic growth has no answer to this question.
The velocity of money increases with a _____, other things constant
a. fall in the inflation rate b. rise in the inflation rate c. rise in the employment rate d. fall in the exchange rate e. rise in the real interest rate
Which of the following is the environmental approach found in the Clean Air Act of 1990?
A. Marketable pollution permits. B. Price caps. C. Command-and-control regulation. D. EPA marginal social permits.
Briefly discuss the organization of the Federal Reserve. Include in your answer a discussion of the individuals/groups who make decisions about monetary policy
What will be an ideal response?