Higher rates of inflation a. reduce real marginal tax rates, increasing savings and investment. b. increase real marginal tax rates, reducing savings and investment. c. reduce real marginal tax rates, reducing savings and investment. d. have no effect on real marginal tax rates, and no effect on savings and investment. e. none of the above. […]
How can the Cambridge equation be restated according to Friedman’s money demand theory? a. Md = k(rB, rE, rD)Py b. Md = k/Py(rB, rE, rD) c. Md = Py/k(rB, rE, rD) d. Md = (rB, rE, rD)Py/k ANSWER A
The Bretton Woods system a. established fixed par values for currencies in terms of gold. b. was to be a system of adjustable pegs to the dollar. c. expected countries with persistent surpluses to devalue their currencies. d. was after the Great Depression in order to end the downturn. ANSWER B
Historically, price discrimination was aggressive behavior exhibited by whom? The (a) monopolist (b) mom and pop business person (c) manager of a large group of industrial workers (d) corporation ANSWER (a)
Electricity and internal combustion engines are general-purpose technologies. They permit the functioning of a wide range of goods, service and production systems. Indicate whether the statement is true or false ANSWER TRUE
Social Security provides incentive for individuals to (a) save more than they consume during their working years. (b) manage their assets privately in order to prepare to live on principal and interest during retirement. (c) rely on transfer payments made by the working class to them during retirement. (d) carefully manage their private retirement portfolios […]
Producers of goods and services suffered during the American War in which of the following sectors? (a) Fishing, whaling, and shipping (b) Exports and imports (c) Manufacturing and agriculture (d) All of the above ANSWER (d)
Installment-plan buying permits consumers to use the income generated from their private assets to pay for goods and services. Indicate whether the statement is true or false ANSWER FALSE
An advantage of a flexible exchange rate system relative to a fixed system is that in a flexible rate system a. currency speculation will be reduced. b. balance of payments surpluses and deficits can be dealt with using fiscal policy, not monetary policy. c. inflation will be minimized by the “discipline of the balance of […]
During the era from 1880 to 1920, the U.S. economy experienced a rise in big business, an expansion in industry and increased concentration in both. Indicate whether the statement is true or false ANSWER TRUE
