Supporters of supply-side economics claim that Reagan's tax policies were quite successful in stimulating the economy because
A. inflation rates fell sharply from the high rates of 1980 and 1981.
B. throughout most of the 1980s, federal receipts continued to rise even though tax rates had been cut.
C. almost immediately after the tax cuts, the economy expanded and the recession of 1980-1982 came to an end.
D. all of the above.
Answer: D
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When considering rent seeking, which of the following is TRUE?
A) The anti-free trade group generally will lobby more than the pro-free trade group. B) The pro-free trade group generally will lobby more than the anti-free trade group. C) Usually only the anti-free trade group is concerned about what is best for society at large. D) Only the pro-free trade group is concerned about the government's revenue from tariffs.
If you are indifferent between investing $1000 for one year in a U.S. Treasury security that has an interest rate of 5% or in a Canadian government security that has an interest rate of 8%, you must be expecting
A) the inflation rate in the United States will be higher than the inflation rate in Canada during the year. B) the U.S. dollar to depreciate against the Canadian dollar by 3% during the year. C) the U.S. dollar to appreciate against the Canadian dollar by 3% during the year. D) productivity growth in Canada to be greater than productivity growth in the United States during the year.