This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: According to the Quantity Theory of Money (Chapter 3), the increase in the money supply from 39.7 ... (Read 66 times)

hubes95

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
According to the Quantity Theory of Money (Chapter 3), the increase in the money supply from 39.7 billion in 1940 to 99.2 billion in 1945 should have fueled strong inflation. However, it did not because
 
  (a) the World War II (194145) (WWII) economy was operating below full employment
  levels of production.
  (b) the WWII economy was operating at full employment levels of production.
  (c) the WWII economy was operating above full employment levels of production.
  (d) price controls prevented the surge in prices across the economy.

Question 2

According to the Laffer curve, an increase in marginal tax rates
 
  a. reduces total tax revenue.
  b. increases total tax revenue
  c. reduces total tax revenue when marginal tax rates rise past a certain point.
  d. indicates that labor supply does not respond to changes in tax rates.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zacnyjessica

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

(a)

Answer to Question 2

C


hubes95

  • Member
  • Posts: 561
Reply 2 on: Jun 30, 2018
Excellent

rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Young adults increase in self-esteem between the ages of 18 and 25, according to this longitudinal s Young adults increase in self-esteem between the ages of 18 and 25, according to this longitudinal s
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Applying Signal Detection Theory Applying Signal Detection Theory
Trichromatic Theory of Color Vision Trichromatic Theory of Color Vision
A high-performance aftermarket air filter often can increase airflow into the engine for more ... A high-performance aftermarket air filter often can increase airflow into the engine for more ...
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Video: Introduction to Tuberculosis

For a complete list of videos, visit our video library