An increase in individual income taxes ________ disposable income, which ________ consumption spending
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
Answer: D
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A firm in a perfectly competitive market
a. can raise the price of its product and sell more output b. can lower the price of its product and sell more output c. can increase its supply to lower the price d. can decrease its supply to raise the price e. accepts the market price for its product
What will a market that experiences a positive externality also experience?
a) a greater market output and lower market price than is optimal b) a smaller market output and lower market price than is optimal c) a smaller market output and a higher market price than is optimal d) a greater market output and higher market price than is optimal
The passage of the Smoot-Hawley Tariff in 1930 sparker a trade war that caused net exports to ___ and real GDP to ___
Fill in the blank(s) with the appropriate word(s).
The U.S.'s high trade deficit must be balanced by:
A. high net capital outflows. B. low net capital outflows. C. net capital inflows. D. None of these statements is true.