According to the quantity theory of money, increases in the money supply lead to
A. decreases in the price level.
B. increases in taxes.
C. increases in the price level.
D. decreases in nominal Gross Domestic Product (GDP).
Answer: C
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Capital gains are
A. the amount of income a taxpayer has after taxes are paid. B. total sales prices from assets. C. any profit you have from asset sales. D. total net income from all sources.
Does a perfectly competitive producer have any incentive to lower its price so it is below the current market price? Explain your answer
What will be an ideal response?
A natural monopoly would benefit by being broken into many smaller firms
a. True b. False Indicate whether the statement is true or false
The major advantage of automatic stabilizers is that they
a. guarantee the federal budget will be balanced in a relatively short amount of time. b. institute countercyclical fiscal policy without the delays associated with legislative action. c. automatically produce surpluses during recessions and deficits during expansions. d. require discretionary actions on the part of Congress before they exert an impact on output and employment.