If the government announces a cut in the capital gains tax and it is expected that investment spending will increase as a result, which of the following are also likely?
a. An upward shift in the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve
b. A downward shift in the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve
c. An upward shift in the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve
d. A downward shift in the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve
e. An upward shift in the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve.
E
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When your textbook authors say competition "can be recognized only in motion pictures, not in still photographs," they mean
A) Hollywood is a competitive industry; portrait photography is non-competitive. B) competition is better described as a process, rather than a fixed state of affairs. C) competitors don't sit still. D) competition didn't exist before the advent of motion picture technology.
Where a free-rider problem exists, goods tend to be: a. underproduced
b. overproduced. c. high-priced and available only to the rich. d. low priced and available only to the poor.
A monopoly's economic profit is protected by the lack of entry of new firms even in the long run
Indicate whether the statement is true or false
How do transfer payments function as negative taxes?