According to traditional Keynesian analysis, a tax cut has a larger effect on aggregate demand than an increase in government expenditures of the same size
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The amount of a tax paid by the buyers will be smaller the
A) more elastic the demand and the more inelastic the supply. B) more inelastic the demand and the more elastic the supply. C) more inelastic are both the supply and demand. D) more elastic are both the supply and demand.
If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?
A) The opportunity cost of producing fishing poles in Canada is higher than the opportunity cost of producing bacon in Mexico. B) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon. C) Mexico must have an absolute advantage in producing fishing poles and Canada must have an absolute advantage in bacon. D) Mexico has a lower opportunity cost of producing bacon than Canada and Mexico has a comparative advantage in producing fishing poles.
In the United States, the Great Depression peaked in:
a. 1900 b. 1933 c. 1945 d. 1981
Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:
a. natural resources endowment. b. human resources investment. c. capital investment. d. political environment.