Answer the following questions true (T) or false (F)
1. For the years 2017-2027, the Congressional Budget Office expects that population growth will be much slower than growth in hours worked.
2. The double taxation problem occurs because households pay taxes on dividends and capital gains from stock and corporations pay taxes on corporate profits.
3. Raising taxes on interest and dividend income will increase the level of investment and economic growth.
1. FALSE
2. TRUE
3. FALSE
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Suppose Stan transfers $1,000 from his checking account into a savings account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 decreases. B) M1 decreases; M2 remains the same. C) Both M1 and M2 increase. D) Both M1 and M2 decrease. E) Both M1 and M2 remain the same.
Other things constant, if there is an increase in the demand for goods now compared to goods in the future, we would expect that the
a. real interest rate would decline. b. capital investment rate would decline. c. current rate of saving would increase. d. real interest rate would rise.
Seven of the 50 states account for approximately half of all union members in the United States.
a. true b. false
Effective AIDS drugs did not exist in the early 1980s. When they became available, they were very expensive. When people use these facts to say that the price of AIDS drugs has increased, economists generally
A. agree. B. note that the drugs are not as effective as advertised. C. stay out of this discussion. D. suggest they are confusing price increases with quality increases.