For the following policy, indicate whether it will or will not increase the rate of economic growth in the United States. B. Congress passes a law that allows taxpayers to reduce their income taxes by the amount of state sales taxes they pay. It is likely that the rate of economic growth will ____________
Fill in the blank(s) with the appropriate word(s).
Answer: increase
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One of the problems in conducting a duration gap analysis is that the duration gap is calculated assuming that interest rates for all maturities are the same. That means that the yield curve is
A) flat. B) slightly upward sloping. C) steeply upward sloping. D) downward sloping.
If the government removes a binding price floor from a market, then the price received by sellers will
a. decrease, and the quantity exchanged in the market will decrease. b. decrease, and the quantity exchanged in the market will increase. c. increase, and the quantity exchanged in the market will decrease. d. increase, and the quantity exchanged in the market will increase.
If the first four units of a good consumed have marginal utilities of 10, 9, 8, and 7, respectively, this trend is an indication of the:
a. law of diminishing marginal utility b. minimization of utility c. law of consumer equilibrium d. law of diminishing consumer surplus
Suppose Andrea is taking just two courses and is at a point inside her PPF of grades for those two courses. If Andrea changes her work habits then it is impossible for
A) either one of her grades to rise. B) both of her grades to rise. C) both of her grades to fall. D) either one of her grades to rise while the other grade remains constant. E) none of the above is impossible in this situation