Public choice analysis indicates
a. most income transfers will be directed toward the poor.
b. rent-seeking activities will improve the efficiency of resource allocation and promote economic growth.
c. rent seeking will be less attractive if the nation's legal (or constitutional) structure makes it difficult to use the political process to take the property or income of others.
d. politicians will consistently oppose programs favored by rent seekers if those programs reduce the welfare of society.
C
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The Mexican peso crisis of 1994 and 1995 was directly related to
A) the start of NAFTA. B) a large capital account surplus. C) a large capital account deficit. D) an undervalued peso. E) a large current account surplus.
In practice, the Fed's policy of targeting ________ in the 1960s proved to be ________, destabilizing the economy
A) money market conditions; countercyclical B) money market conditions; procyclical C) monetary aggregates; countercyclical D) monetary aggregates; procyclical