Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

Which of the following is NOT true about the duties the Fed performs for the federal government?

A) The U.S. Treasury has a checking account at the Fed. B) The Federal Reserve aids in the purchase and sale of certain government securities. C) The U.S. Treasury controls the Fed. D) The Federal Reserve is the banker and fiscal agent of the federal government.

The problem with spinning is that it may ________ the cost of capital to a firm and thus ________ the efficiency of the capital market

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease