The higher is the tax on productive activity, the more likely that people will attempt to evade those taxes by diverting their economic activity from the formal, reported economy to an underground, "off-the-books" economy
Indicate whether the statement is true or false
true
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The demand for loanable funds curve is
A) downward sloping when plotted against the real interest rate. B) vertical at the full employment level of investment. C) constant at the maximum expected profit rate. D) upward sloping when plotted against the real interest rate.
A market demand curve is found by adding the individual prices for each quantity demanded
a. True b. False Indicate whether the statement is true or false
Instrumental variables requires that the variable not be correlated with the outcome variable.
A. True B. False C. Uncertain
Monetary policy refers to the government's attempt at smoothing business cycles through the use of changes in:
A. Tax rates B. Interest rates C. Wage rates D. Government spending