The tax multiplier
A) is negative.
B) is a measure of how much taxes will fall when income is falling.
C) is larger in absolute value as compared to the government spending multiplier.
D) is always less than one.
A
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If Canada imposes a tariff on bananas and if none are grown in Canada, this tariff has
A) only revenue effects. B) only protective effects. C) both protective and revenue effects. D) neither protective nor revenue effects.
Why does the Fed have imperfect control over the money supply over short periods?
a. Because of unpredictable changes in reserve requirements b. Because the public responds to open market operations in unpredictable fashions c. Because the Fed does not know how much reserves will change when it buys or sells securities d. Because of unpredictable changes in public desire to hold cash and banks' desires to hold reserves
When the economy's actual price level exceeds the expected price level, the real value of an agreed-on ________ ________ declines
a. real wage b. nominal wage c. contractual price d. supply level
Behaving strategically:
A. is an essential part of game theory. B. means recognizing that the actions of others will affect the trade-offs you face, and acting accordingly. C. involves rational decision making. D. All of these statements are true.