If the government increases taxes by $4 billion and increases spending by $4 billion, equilibrium output increases by $4 billion.
Answer the following statement true (T) or false (F)
True
You might also like to view...
If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold, what should the farm do to maximize its profit?
A) increase output B) decrease output C) lower its price to sell more D) determine what the total revenue and total cost of production are
The nominal exchange rate is the
A) domestic currency price of foreign currency. B) foreign currency price of domestic currency. C) price of domestic goods in terms of foreign goods. D) price of foreign goods in terms of domestic goods.
Suppose you are making $50,000 per year and paying $5,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $6,000 per year. Based on this information, the income tax system is
A) proportional. B) progressive. C) regressive. D) bracketed.
If we wanted to consider all the money that had been "multiplied" in the economy, we would think about:
A. hard money. B. M1. C. M2. D. None of these.