Which of the following represents expansionary fiscal policy?
A. an increase in corporate income tax rates
B. a reduction in government spending
C. a decrease in average individual income tax rates
D. an increase in marginal individual income tax rates
Answer: C
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The balance of trade includes trade in
A) goods only. B) both goods and services. C) services only. D) neither goods nor services.
The labor force typically grows faster in developing countries than in industrial ones because mortality rates are higher in low-income countries
a. True b. False Indicate whether the statement is true or false
The maximum amount of increase in the money supply that can be caused by an increase in excess reserves is equal to the
A) deposit multiplier ´ the required reserve ratio. B) loan multiplier ´ the change in excess reserves. C) deposit multiplier ÷ the change in excess reserves. D) deposit multiplier ´ the change in excess reserves.
As the price of cookies increases, firms that produce cookies will:
A. increase the supply of cookies. B. decrease the supply of cookies. C. increase the quantity of cookies supplied. D. decrease the quantity of cookies supplied.