Economics > EXAM > ECON 203 EXAM 3 PAKHOTINA 2025/2026 LATEST STUDY QUESTIONS WITH CORRECT ANSWERS GUARANTEED PASS | RA (All)
ECON 203 EXAM 3 PAKHOTINA 2025/2026 LATEST STUDY QUESTIONS WITH CORRECT ANSWERS GUARANTEED PASS | RATED A+
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1. 3 basic approaches used to pick stocks that are most likely to increase in value - Answer>>> 1. fundamental analysis 2. technical analysis 3. throw a dart 2. Main reason why SS and Medicare curr... ently make up such a large portion of the budget - Answer>>> Demographic changes -people are living longer today than ever before and draw post-retirement benefits longer -those who paid into the programs for many years are ow retired and drawing benefits -the baby-boom generation is now entering retirement age 3. Open market operations - Answer>>> Sales or purchases of government bonds by the Fed to or from banks on the open market -if fed buys bonds, the amount of money increases -if fed sells the bonds, the amount of money decreases -this is the most used tool of the monetary policy 4. Tax distortion - Answer>>> Refers to the fact that tax laws only take into consideration nominal income, not what you can buy with it -if the tax brackets are not adjusted frequently inflation may push the income into a higher tax bracket. while purchasing power stays the same, tax rate increases 5. Problems with unpredictable inflation - Answer>>> -if changes in prices of inputs over the next year are unpredictable it is difficult to do business planning -uncertainty also makes difficult to predict the real interest rate by the end of the year -high unpredicted inflation redistributes wealth from savers to borrowers [Show More]
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