Once monetary policy is dedicated to controlling the level of nominal GDP, then fiscal policy can be used to
A) choose the overall level of interest rates, with a high budget surplus implying a high level of interest rates.
B) choose the overall level of interest rates, with a high budget deficit implying a high level of interest rates.
C) control the level of inflation, with a high budget surplus implying a faster rate of inflation.
D) control the level of inflation, with a high budget deficit implying a faster rate of inflation.
B
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The national income accounts include a value for the amount of capital stock "used up" during the production of current output. This dollar amount is called
a. appreciation. b. dollarization. c. amortization. d. depreciation.
Why do major-league baseball players get paid more than minor-league players?
a. Major-league players are better athletes. b. The higher wage reflects a compensating differential. c. Playing in the major leagues in more pleasant then playing in the minor leagues. d. The higher wage is often due to educational discrepancies.