A decrease in the real interest rate will
A) increase consumption and investment. B) increase consumption and reduce investment.
C) increase saving and investment. D) decrease investment and government spending.
A
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Becky holds $30,000 as money. After a year during which inflation was 5 percent a year, the inflation tax over that year was
A) $1,000. B) $1,500. C) $500. D) $5. E) $3,000.
Reported GDP increases when, in fact, total production is unchanged when I. there is a shift from household production to market production. II. a previously illegal activity is legalized
A) I only B) II only C) neither I nor II D) both I and II
The above figure gives your budget line between CDs and magazines. Which combination of CDs and magazines are affordable?
A) combination a B) combinations a, b, c, and d C) combination c only D) combinations b, c, and d
In recent years, the Canadian province of British Columbia has increased its carbon tax. Which of the following statements is correct?
a. Despite the increase in the carbon tax, emissions of greenhouse gases in British Columbia have continued to increase at a rapid rate. b. Along with the increase in the carbon tax, British Columbia has decreased income-tax rates on individuals and corporations. c. Few, if any, economists favor carbon taxes such as the one that British Columbia has imposed. d. All of the above are correct.