Actual experiments show that negative income taxes destroy work incentives.
Answer the following statement true (T) or false (F)
False
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Which of the following is NOT included using the transactions approach to measuring the money supply (M1)?
A) certificates of deposit B) traveler's checks C) currency D) transaction deposits
Suppose the economy is operating below potential output. If policy makers try to avoid a budget deficit by raising taxes or reducing government spending, these actions would
A) make a recession worse. B) increase inflation. C) negate the multiplier effect. D) help pull an economy out of a depression.
Which of the following is a way to finance a budget deficit?
A) increased private saving B) decreased domestic investment C) decreased foreign investment D) all of the above
An increase in the price of good X due to a reduction in its supply will: a. increase the total revenue of good X
b. decrease the total revenue of good X. c. increase the total revenue of goods that are substitutes for X. d. increase the total revenue of goods that are complements for X.