The IS curve would unambiguously shift up and to the right if there were
A. an increase in both government purchases and the expected future marginal product of capital.
B. an increase in both government purchases and corporate taxes.
C. an increase in the expected future marginal product of capital and a decrease in expected future output.
D. a decrease in both corporate taxes and the expected future marginal product of capital.
Answer: A
You might also like to view...
It is common knowledge that many U.S. national parks have become overused. One possible solution to this problem is to
a. increase entrance fees. b. decrease camping permit fees. c. require all visitors to register upon entering the park. d. sell the land that the parks currently occupy.
A perfectly competitive firm is making an economic profit when
A) its total revenue is greater than its total cost. B) the price is greater than the minimum of its average total cost. C) the price is greater than the minimum of its average variable cost. D) Both answers A and B are correct.
For the Coase theorem to work there must be clear assignment of property rights
Indicate whether the statement is true or false
If a single household received all income, the Gini coefficient would
a. have a value of zero. b. be identical to the Lorenz distribution. c. have a value of 1. d. have a value of infinity.