Personal income taxes are reduced as part of an expansionary fiscal policy. What is the impact on aggregate expenditures and income?
A) Both increase.
B) Both decrease.
C) Aggregate expenditure increases and income decreases.
D) Aggregate expenditure decreases and income increases.
A
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Refer to A Negative Externality Problem. The equation for social marginal cost is
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation. a. MCS = 10 + Q b. MCS = Q c. MCS = 20 + Q d. MCS = 10 + 10Q
Tastes for perfect complements are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
Which of the following is FALSE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are usually given a lot of discretion in their decision making c. Profit centers usually largely run themselves d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division
In 1935, what changes were made to the Federal Reserve System?
(A) A central group of banks were authorized to lend to each other in times of need. (B) There was an increase of Federal District Banks from 10 to 12 banks. (C) The problems of regional banks were no longer the concern of Federal District Banks. (D) The Federal Reserve System was given more centralized power.