When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?
A) thinking at the margin B) making assumptions
C) isolating variables D) all of the above
D
Economics
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A gain can be made by the holder of a call option when the current exchange rate
A) exceeds the exercise price. B) exceeds the forward price. C) is less than the futures price. D) falls to zero.
Economics
Under fiscal stabilization policy in the New Keynesian model, after a positive shock to output,
A) the government increases expenditures and the central bank increases the money supply. B) the government increases expenditures and the central bank decreases the money supply. C) the government decreases expenditures and the central bank increases the money supply. D) the government decreases expenditures and the central bank decreases the money supply.
Economics