If the size of a tax doubles, the deadweight loss doubles
a. True
b. False
Indicate whether the statement is true or false
False
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Javier has been thinking about purchasing a bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the
A) money balance demand for money. B) precautionary demand for money. C) transactions demand for money. D) asset demand for money.
Total planned expenditure (equals income) is 13,500, autonomous consumption expenditure is 600, the marginal propensity to consume is 0.8, government purchases are 2,700, taxes are 2,500 and planned investment spending is 2,900
Net exports is ________. A) 3,840 B) negative 1,500 C) negative 1,380 D) negative 1,340 E) 2,100
Overcrowding under public school choice is not a problem because _____
a. parents find crowded schools undesirable b. parents do not mind sending their kids to schools far away from home c. schools have the ability to drastically expand capacity in the short-run d. schools will be extremely exclusionary
Which of the following is NOT a likely goal of macroeconomic coordination between nations?
A) Reducing trade barriers B) Achieving a desirable level of world economic growth C) Avoiding a global economic crisis D) Correcting global economic imbalances