A tax cut of $5 billion will have a greater effect on the economy than an increase in government purchases of $5 billion.

Answer the following statement true (T) or false (F)


False

Economics

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A speculative attack on an overvalued currency leads to a(n) ________ in international reserves and a(n) ________ in the fundamental value of the currency.

A. decrease; decrease B. increase; decrease C. increase; increase D. decrease; increase

Economics

An upturn in business confidence may cause firms to ________ their estimates of MPK, leading to a ________ capital stock that matches MPK to the user cost of capital and thus ________ of net investment

A) lower, larger, a contraction B) lower, larger, an expansion C) lower, smaller, a contraction D) raise, smaller, a contraction E) raise, larger, an expansion

Economics

In Exhibit 1, what is the producer surplus when the price is $4 and the quantity is one?


a. $7
b. $4
c. $3
d. $1

Economics

When the Fed engages in a tight money policy, the price of government bonds tend to

A. fall. B. rise. C. remain constant. D. move in the same direction as the bonds' market interest rate return.

Economics