When taxes depend on income, a higher tax rate implies a higher government spending multiplier.
Answer the following statement true (T) or false (F)
False
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If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $2 and they are paying the profit-maximizing wholesale price of $8, what is the retail price of the product?
A) $6 B) $8 C) $2 D) $10
If the price of automobiles was to increase, then
A) the quantity of gasoline demanded would decrease. B) the demand for gasoline would increase. C) the demand for gasoline would decrease. D) the supply of gasoline would increase.
A balanced budget would not affect income because an increase in government spending is exactly matched by an increase in taxes
a. True b. False Indicate whether the statement is true or false
Institutions that encourage productive activities and discourage counterproductive ones, will tend to promote
a. economic growth. b. rent-seeking c. economic fluctuations d. high rates of unemployment.