An increase in the money supply will cause the nominal interest rate to ________ and the quantity of money to ________

Taxes on polluting firms for pollution are intended to

a. raise enough revenue to cut the deficit in half. b. encourage firms to reduce charges by polluting less. c. be efficient, i.e., result in no excess burden. d. raise revenue for general spending needs.

The original (1958 ) Phillips curve

A) showed that stagflation is inevitable. B) showed the tradeoff between the use of monetary and fiscal policy. C) has never been used as an important economic policy tool. D) suggested a tradeoff between wage inflation and the unemployment rate. E) none of the above