An increase in the price level in the United States will have what effect on the aggregate expenditure line?
A) Aggregate expenditure will shift upward.
B) Aggregate expenditure will become steeper.
C) Aggregate expenditure will shift downward.
D) Aggregate expenditure will not be affected by an increase in the price level in the United States.
C
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Financial intermediaries, such as commercial banks, help borrowers, particularly small borrowers, by:
A. offering tax-preferred borrowing opportunities. B. eliminating the risk of borrowing. C. providing information to evaluate financial investments. D. providing credit that might otherwise not be available.
For decreases in wage taxes, substitution effects put negative pressure on tax revenues while wealth effects put positive pressure on tax revenues.
Answer the following statement true (T) or false (F)
Which of the following statements is based on positive analysis?
a. Individuals without health insurance have less access to physicians' services than those who have health insurance. b. The high cost of health insurance places U.S. firms at a competitive disadvantage with their foreign competitors. c. Employers should be required to provide health insurance for all full-time workers and their dependents. d. none of the above. e. Both a and b.
If the size of a tax doubles, the deadweight loss doubles
a. True b. False Indicate whether the statement is true or false