Questions from General Economics


Q: How does government debt create a socially more inequitable distribution of income

How does government debt create a socially more inequitable distribution of income---redistribute income away from those with relatively lower incomes to those with relatively high income?

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Q: What would you do to reduce the deficit? Answer

What would you do to reduce the deficit?

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Q: Why isn’t credit cards money? Answer:

Why isn’t credit cards money?

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Q: What is the major argument in favor of an independent Fed?

What is the major argument in favor of an independent Fed?

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Q: Why do Americans (and people around the world) continue to

Why do Americans (and people around the world) continue to use the dollar as money considering that it is not backed by gold or anything else tangible?

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Q: What are the advantages of an economy using money as opposed to

What are the advantages of an economy using money as opposed to a barter system of exchange?

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Q: Draw a graph that shows a monopolistically competitive firm with a short

Draw a graph that shows a monopolistically competitive firm with a short-run profit. Explain what will happen to its demand curve as additional firms enter the industry.

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Q: What are the arguments for and against deposit insurance such as that

What are the arguments for and against deposit insurance such as that provided by the FDIC?

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Q: How can the loan decisions of individuals and private bankers contribute to

How can the loan decisions of individuals and private bankers contribute to the instability in the macroeconomy (the business cycle)? Otherwise stated, how can an uncontrolled banking system destabili...

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Q: Which of the three monetary policy tools is the most powerful?

Which of the three monetary policy tools is the most powerful? Why?

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