The excess burden of a tax is also a deadweight loss
Indicate whether the statement is true or false
TRUE
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Increases in autonomous expenditure induce ________ in aggregate expenditure thereby making the multiplier ________
A) further increases; greater than one B) further increases; unnecessary C) further increases; less than one D) a decrease; less than one E) a decrease; greater than one
Substitution bias causes the CPI to understate the increase in the cost of living from one year to the next
a. True b. False Indicate whether the statement is true or false
The primary inducement for new firms to enter an industry is:
A. increased technology. B. presence of economic profits. C. low capital costs. D. availability of labor.
Which of the following assets is the most liquid?
A) money market mutual fund B) computer C) washing machine D) U.S. Treasury bond