An increase in the effective tax rate on capital would cause the IS curve to
A. shift up and to the right.
B. shift down and to the left.
C. remain unchanged.
D. remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.
Answer: B
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Which of the following is true about the United States?
A. There has only been one recession in U.S. history. B. There have been recessions every couple of years throughout U.S. history. C. Recessions have never occurred in the United States. D. Recessions have occurred periodically in U.S. history. E. Recessions in the United States have generally been worse than in other countries.
Suppose domestic beef producers face demand of QD = 1000 - 5P. Suppose the Chinese acquire a taste for U.S. beef such that their demand is QD = 500 - 5P. Market demand is now
a. 1000 - 10P for all P b. 1500 - 10P for all P c. 1500 - 5P for all P d. 1000 - 5P for P > 100 and 1500 - 10P for P < 100
The desire of a consumer to purchase one more unit of a product is known as ______.
a. marginal production cost b. marginal willingness to pay c. deadweight loss d. producer surplus
All of the following are characteristics of monopolistic competition EXCEPT
A. product differentiation. B. a few firms dominate the industry. C. many firms in the industry. D. advertising.