An analysis of countries experiencing rapid inflation indicates that inflation is generally
a. caused by strong labor unions.
b. the result of restrictive macroeconomic policy, which pushes up interest rates.
c. caused by the impulse buying of consumers, who continue to buy the same goods even when prices rise.
d. the result of rapid growth in the money supply.
D
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Equity and debt instruments with maturities greater than one year are called ________ market instruments
A) capital B) money C) federal D) benchmark
Which of the following statements is false?
A. In the case of a negative externality, the market equilibrium is inefficient. B. In the case of a negative externality, when a tax is set equal to the marginal external costs (MEC) efficiency can be achieved. C. In the case of a negative externality, when a tax is set that is greater than the marginal external costs (MEC) inefficiency will result. D. In the case of a positive externality, when a tax is set equal to the marginal external benefits (MEB) efficiency can be achieved.