This topic contains a solution. Click here to go to the answer

Author Question: According to the Quantity Theory of Money (Chapter 3), the increase in the money supply from 39.7 ... (Read 69 times)

hubes95

  • Hero Member
  • *****
  • Posts: 561
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
Answer to Question 1

(a)

Answer to Question 2

C




hubes95

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


parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

For a complete list of videos, visit our video library