When one examines the nature of a tax in relation to the incomes of people paying the tax, it is possible to

If you have a mortgage on your house at 6 percent and the inflation rate when the mortgage was acquired was 3 percent but has since increased and is now 8 percent per year; the current real interest rate is

A) -2 percent per year. B) 8 percent per year. C) 6 percent per year. D) 0 percent per year. E) 14 percent per year.

The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________

A) "discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run" B) "the speed with which the self-correcting mechanism in the economy acts is in question" C) "the speed with which unemployment tends to disappear is debatable" D) all of the above E) none of the above