Refer to Figure 14.1. Other things equal, a decrease in government spending on infrastructure projects is best represented as a movement from
A) point A to point B.
B) point C to point A.
C) point C to point B.
D) point B to point C.
A
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Changes in stock prices
A) do not affect people's wealth and their willingness to spend. B) affect firms' decisions to sell stock to finance investment spending. C) occur in regular patterns. D) are unimportant to decision makers.
A particular cable TV company requires a household to subscribe to its high-speed Internet service if it subscribes to cable TV, and vice versa. This practice
a. is referred to as tying. b. is regarded by some economists as a form of price discrimination. c. is controversial among economists because they disagree on whether it has adverse effects for society as a whole. d. All of the above are correct.
The quantity theory of money implies that an increase in the money supply will ultimately:
A. affect only the level of real GDP; the price level will remain unchanged. B. increase the price level and leave real GDP unchanged. C. increase the price level and the level of real GDP. D. decrease the price level and the level of real GDP.
Which of the following is true?
A) Local governments cannot collect taxes in the U.S. B) Only state governments can collect taxes in the U.S. C) Only the federal government can collect taxes in the U.S. D) The central as well as the local governments collect taxes in the U.S.