What happens when the government imposes a unit excise tax on a good?
A) The amount of the tax is added to the current equilibrium price.
B) The demand for the newly taxed good decreases.
C) That good's supply curve shifts down by the amount of the tax.
D) The newly taxed good's supply curve shifts vertically upward by the amount of the per-unit tax being levied.
D
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An increase in ________ leads to an equal ________ in the monetary base in the short run
A) float; decrease B) float; increase C) discount loans; decrease D) Treasury deposits at the Fed; increase
An investment tax credit ________
A) is designed to incentivize higher capital stock expenditures at any given interest rate B) may lead to increases in autonomous investment C) may put upward pressure on the interest rate D) all of the above E) none of the above
Which of the following pairs of goods are NOT complements?
A) Hockey sticks and hockey pucks B) Computer CPUs and computer monitors C) On-campus student housing and off-campus rental apartments D) all of the above E) none of the above
The aggregate demand curve is downward sloping because: a. buyers tend to purchase more of all goods and services as the opportunity costs of producing those goods increase. b. buyers tend to purchase more of all goods and services as price levels decrease
c. buyers tend to purchase those goods that have a unit elasticity. d. buyers tend to purchase more of inferior goods as price levels increase.