Which of the following would not be a result of replacing the income tax with a consumption tax so that interest income was no longer taxed?
a. The interest rate would decrease.
b. Investment would decrease.
c. The standard of living would eventually rise.
d. The supply of loanable funds would shift right.
b
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Suppose that the quantity of cars supplied exceeds the quantity of cars demanded. We would expect that
A) the price of cars will increase. B) the price of cars will decrease. C) the supply will increase (supply will shift to the right) to meet the demand. D) the demand will decrease (demand will shift to the left) to meet the supply.
What does it mean when one currency is "pegged" against another currency?
What will be an ideal response?
In order to prove that Motrin and Ibuprofen are substitutes, one should measure the ________ and get a ________
A) price elasticity of demand; number greater than 1 (in absolute value) B) cross-price elasticity; positive number C) cross-price elasticity; negative number D) price elasticity of demand; number less than 1 (in absolute value)
President Jackson's reasons for vetoing the recharter of the Second Bank of the United States did not include
a. fears that the bank was nearing insolvency. b. questions of constitutionality. c. concerns over foreign ownership. d. fears that the bank could undo democracy itself.