The U.S. government uses export subsidies extensively to stimulate exports
a. True
b. False
Indicate whether the statement is true or false
False
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A stronger dollar leads to lower input prices for U.S. firms because
A) U.S. workers are willing to work for less pay because of the stronger dollar. B) U.S. producers of intermediate goods lower prices in order to benefit from the stronger dollar. C) both exports of raw materials and intermediate goods are lower in prices. D) both imports of raw materials and intermediate goods are lower in prices.
If households save $40 billion less at each level of income and the marginal propensity to consume (MPC) is 0.8, the aggregate expenditure line will _____
a. intersect the 45-degree line at a real GDP of $40 billion b. shift upward by $40 billion c. shift downward by $40 billion d. shift upward by $200 billion because of the multiplier mechanism e. shift downward by $200 billion because of the multiplier mechanism
Monopolistically competitive firms, like monopoly firms, maximize their profits by charging a price that exceeds marginal cost
a. True b. False Indicate whether the statement is true or false
Which of the following tax structures is potentially consistent with the concept of vertical equity?
a. A proportional tax b. A progressive tax c. A regressive tax d. Any of these tax structures are potentially consistent with vertical equity