A lump-sum tax minimizes deadweight loss
a. True
b. False
Indicate whether the statement is true or false
True
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A ________ occurs when a country's imports exceed its exports
A) budget surplus B) trade deficit C) trade surplus D) fiscal deficit
According to the interest-rate-based perspective on the monetary policy transmission mechanism
A) changes in the money supply have little influence on macroeconomic variables. B) key channels of monetary policy indirectly ultimately relate money supply changes to total planned spending through indirect effects on planned investment. C) inflation is always caused by excessive monetary growth and changes in the money supply offset aggregate demand only directly. D) monetary policy leads to increases in the price level but will have no effect on the rate of output.