Holding other factors constant, if a tax increase moves the government budget from deficit to surplus, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; not change
B. decrease; decrease
C. decrease; increase
D. increase; increase
Answer: C
You might also like to view...
In the figure above, with international trade the United States ________ million T-shirts per year
A) imports 20 B) exports 20 C) imports 40 D) imports 60 E) exports 40 The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
Which of the following is a common mistake managers make?
A. Treating implicit opportunity costs as part of the total costs of using resources. B. Maximizing the value of the firm instead of maximizing the firm's profits. C. Using marginal analysis to make output decisions. D. Reducing price to increase the firm's share of total market sales. E. all of the above.
The knowledge and skills acquired by a worker through education and experience is a description of which factor of production?
A. physical capital B. human capital C. labor D. entrepreneurship
Entrepreneurs play a key role in which type of economy?
A. centrally planned economy B. market economy C. command economy D. All of these