If taxes depend on income, then the absolute value of the tax multiplier ________ it would be if taxes were a lump-sum amount.
A. is equal to what
B. is larger than
C. is smaller than
D. could be either larger than or smaller than
Answer: C
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The most commonly used tool of monetary policy in the U.S. is ___________ market operations.
a. open b. closed c. private d. public
The reason poor, young, unmarried women allow themselves to get pregnant is so they can get on welfare, according to conservatives like ____________.
Fill in the blank(s) with the appropriate word(s).
The government has just passed a law requiring that all residents earn the same annual income regardless of work effort. This law is likely to
a. increase efficiency and increase equality. b. increase efficiency but decrease equality. c. decrease efficiency but increase equality. d. decrease efficiency and decrease equality.
If a company reports that it is going to have a difficult time meeting its debt obligations, you would expect the Ptoday: Ptoday = 
A. to remain about the same until the Dtoday actually changes. B. to fall since the risk premium will likely rise. C. to fall since the risk-free return will rise. D. to rise since the Dtoday will likely fall.