Using supply and demand analysis, which of the following is true?
A. The burden of a tax on production cannot be determined on the basis of who actually pays the tax.
B. The burden of a tax on production is always split evenly between consumers and sellers.
C. Consumers bear the entire burden of a per unit tax on production.
D. Sellers bear the entire burden of a per unit tax on production.
Answer: A
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Define the following terms and explain their importance to the study of macroeconomics. a. Structural budget deficit b. Monetize the deficit c. Crowding out d. Inflation accounting e. Mix of fiscal and monetary policy
What will be an ideal response?
Which of the following is not a basic monetary policy tool used by the Fed?
A. The discount rate. B. The reserve requirement. C. Taxes. D. Open-market operations.