An income tax reduces the size of the multiplier
Answer the following statement true (T) or false (F)
True
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Which of the following is NOT an example of a flow variable?
A) inventory investment B) The federal deficit C) capital stock D) planned investment
A wealthy English executive decides to buy a large amount of U.S. financial assets. This would contribute to
a. a deficit in the U.S. capital account. b. a surplus in the U.S. current account. c. a surplus in the U.S. capital account. d. a deficit in the total balance of payments.
If Freedonia changes its laws to allow international trade in software and the world price is lower than its domestic price, then it must be the case that
a. both consumer surplus and producer surplus increase. b. consumer surplus increases and producer surplus decreases. c. consumer surplus decreases and producer surplus increases. d. both consumer surplus and producer surplus decrease.
If the product produced by workers experiences a decrease in demand, the value of marginal product of labor will:
A. decrease, increasing the demand for labor. B. increase, increasing the demand for labor. C. decrease, decreasing the demand for labor. D. increase, decreasing the demand for labor.