The most likely reason politicians don't appear to economists to look at policy issues in a cost/benefit framework is that:
A. politicians are focusing on the long-run effects of policies rather than the short-run effects.
B. politicians don't make rational decisions.
C. politicians are not economists.
D. the marginal costs and marginal benefits facing the politician are not necessarily the ones facing society.
Answer: D
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Money targeting works when the demand for money curve is ________ and predictable. Technological change in the banking system has led to ________ and ________ shifts in the demand for money curve
A) stable; large; predictable B) unstable; large; unpredictable C) stable; small; unpredictable D) stable; small; predictable E) stable; large; unpredictable
According to the Laffer curve, after raising the tax rate to some level, any further increase by government will cause tax revenues to decrease
Indicate whether the statement is true or false