If a person predicts that a cut in income tax rates will decrease income tax revenues, he or she implicitly assumes that the percentage __________ in the tax base will be __________ the percentage cut in the tax rate

If the Fed chooses to target the money supply, it

a. cannot at the same time control the interest rate b. can only do so if the interest rate is targeted as well c. gives up the opportunity of determining the legal reserve requirement d. gives up the opportunity of determining the discount rate e. gives up the opportunity of determining the federal funds rate

At most museums, you can either buy a year-long membership that gives you free access to the museum any time, or you can pay a daily fee every time you visit. (Assume for purposes of this exercise that everyone can in principle afford the year-long membership.)

A. Those who choose to pay the daily fees all place the same value on their marginal museum visit. B. We cannot tell how much value anyone places on the marginal museum visit because we cannot compare utility across individuals. C. If someone is indifferent between the two options, she will go to the museum at least as much if she chooses the year-long membership than if she does not. D. Both (a) and (c) are true. E. Both (b) and (c) are true.