A tax that is imposed by the importing country when an imported good crosses its international boundary is called

The most important tool of monetary policy is ________, through which the Fed affects the variable ________ in the money-creation formula

A) open market operations, e B) open market operations, H C) rediscount policy, e D) rediscount policy, c E) reserve requirement policy, e

Suppose the plant owners design an incentive scheme for the plant manager in which the feasible production level is set equal to output from the previous quarter. The bonus payment is determined by the formula B = 0.2Qf + 0.2(Q - Qf)

What potential problems can arise with this scheme? A) If Qf is unusually large, then the manager has little incentive to work hard during the following quarter because Q will likely fall back below Qf. B) If Qf is unusually small, then the manager will receive a small bonus regardless of their efforts during the current quarter. C) The manager has an incentive to underperform and generate a small Q during the current quarter in order to provide a smaller benchmark for performance in the next quarter. D) The incentive scheme only depends on current output and does not measure performance relative to feasible production.