Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same.
b. Demand for real goods and services to remain the same and M2 money supply to fall.
c. Demand for real goods and services to rise and M2 money multiplier to fall.
d. Demand for real goods and services to rise and M2 money supply to rise.
.A
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If the tax system is made more progressive, the after-tax wages of high-income workers would _____
a. fall b. rise c. stay constant d. rise or fall depending upon job market conditions
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent and is paid before Albert. If Albert knew how much he
was going to receive before the check arrived, he most likely invested in a. common stock b. preferred stock c. indirect stock ownership d. mutual funds e. low-yield dividends
Which of the following would most likely decrease the current demand for DVD players?
a. an increase in consumer income b. an increase in the prices of television sets, a complement for DVD players c. an expectation that the price of DVD players would rise sharply in the near future d. an increase in the price of VCRs, a substitute for DVD players
Congressman Dearmark justified spending $3 million on a new entertainment complex in his district because it will create 450 new jobs for his residents. As a student of economics, you know that
a. this is a case of the "broken window fallacy.". b. this is a great use of taxpayer dollars. c. this policy diverts money from spending somewhere else in the economy. d. Both a and c are correct.