Under a fixed exchange rate system, at low domestic real interest rates net capital outflows are ________, so the central bank ________ foreign-exchange reserves
A) positive; acquires
B) positive; loses
C) negative; acquires
D) negative; loses
B
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If the CPI was 121.5 at the end of last year and 138.3 at the end of this year, the inflation rate over these two years was
A) 10.2 percent. B) 13.8 percent. C) 12.2 percent. D) 16.8 percent.
If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
a. basing its taxation on ability to pay b. levying a proportional tax c. able to afford fewer treatment facilities when liquor sales decrease d. discouraging alcoholics from seeking treatment at government facilities e. providing a service that the private sector cannot provide
Determine the range of abatement within which policy achieves positive net benefits.
Suppose that the benefits and costs of water quality policy have been estimated as follows: MSB = 40 – 0.8A MSC = 10 + 0.2A TSB = 40A – 0.4A2 TSC = 10A + 0.1A2, where A is the percentage of pollution abatement and the benefits and costs are measured in thousands of dollars.
Homogeneous products are indistinguishable from one another.
Answer the following statement true (T) or false (F)