The table gives the demand and supply schedules for cookies. The government now levies a $0.30 tax on cookies. As a result, the price of a packet of cookies increases by ________ and the tax revenue collected is ________ a week
A) $0.20; $24
B) $0.10; $9
C) $0.20; $20
D) $0.30; $30
A
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A cut in the income tax rate ________ the tax wedge and ________ employment, saving, and investment
A) decreases; increases B) increases; increases C) does not change; increases D) decreases; does not change E) increases; decreases
The natural rate of unemployment:
A. occurs at the economy's potential level of output. B. is zero. C. will cause a steady rise in the price level. D. All of these statements are true.
If the Fed sells a U.S. Treasury bill to a member of the public, the banking system has
A. less reserves and the money supply tends to fall. B. more reserves and the money supply tends to fall. C. less reserves and the money supply tends to grow. D. more reserves and the money supply tends to grow.
The difference between a country's ________ exports and its ________ imports is the balance of trade.
A. service; service B. total; service C. merchandise; merchandise D. total; total