If the federal government tries to make fiscal policy sustainable by increasing taxes on capital income, the after-tax return to capital goods will ________ and will result in ________ potential GDP
A) increase; lower
B) decrease; higher
C) decrease; lower
D) increase; higher
C
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The United States is a ________ nation because it pays ________ in interest to the rest of the world than it receives in ________ from the rest of the world
A) creditor; more; interest B) debtor; more; interest C) debtor; less; cash D) debtor; more; cash E) debtor; less; interest
Why do people in New York City often read the obituaries to locate an apartment?
A) They are strange. B) They find it efficient, given the alternatives. C) The landlords force them to. D) There is no other source of apartment rental information outside the obituaries.
Which of the following statements correctly characterizes nationalization in the U.S.?
A. The U.S. does not ever follow a policy of nationalization because that would run counter to our capitalist economy. B. The U.S. has a history of nationalization, much of which was temporary. C. The U.S. has mostly nationalized industries, including Amtrak and the United States Postal Service. D. In times of crisis, the U.S. government has nationalized certain industries and those industries have remained permanently nationalized for the protection of the workers and consumers.
Real domestic investment spending is
A. negatively related to the level of interest rates in the economy. B. positively related to government spending. C. negatively related to the exchange rate. D. positively related to the marginal propensity to consume.