An increase in the effective tax rate on capital would cause the IS curve to ________ and the LM curve to ________
A) shift down and to the left; be unchanged
B) shift down and to the left; shift up and to the left
C) shift up and to the right; be unchanged
D) shift up and to the right; shift up and to the left
A
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As global financial markets become more intertwined, the Fed has
A) less control over monetary policy. B) more control over monetary policy. C) more control over fiscal policy. D) less control over fiscal policy.
Briefly describe the significance of equilibrium output and price on consumer and producer surplus.
What will be an ideal response?
When economists want to hold a number of factors constant, they are demonstrating which of the following expressions?
A. Positive economics model. B. Consumer sovereignty. C. Ceteris paribus. D. Normative economics.
Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
Suppose Cody tells Lee that if Lee chooses aggression, then Cody will also choose aggression, and if Lee chooses cooperation, then Cody will also choose cooperation. Cody's statement is:
A. not credible. B. a description of the two equilibria in this game. C. a commitment device. D. credible.