A study by economists at the International Monetary Fund compared increases in inflation rates in countries with and without specific inflation targets based on the surge in oil prices in 2007. The results provide
A) no evidence that countries with specific inflation targets were any better off than countries without specific inflation targets.
B) evidence that countries with specific inflation targets actually experienced greater increases in inflation than did countries without specific inflation targets.
C) evidence that countries with specific inflation targets did experience lower increases in inflation than did countries without specific inflation targets.
D) evidence that countries with specific inflation targets experienced no increases in inflation, whereas countries without specific inflation targets experienced significant increases in inflation.
C
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Scarcity exists because of: a. the allocation of goods by prices
b. specialization and division of labor. c. the market mechanism. d. unlimited wants and limited resources.
The multiplier effect of a tax cut is ______ the multiplier effect of an equal amount of government spending.
a. less than b. the same as c. a little more than d. much more than