A consumer values a car at $30,000 and a producer values the same car at $20,000 . What amount of tax will result in unconsummated transaction?
a. $4,000
b. $9,000
c. $15,000
d. $2,000
c
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If the nominal interest rate is above the equilibrium value, then the quantity demanded of money is ________ than the quantity supplied of money, bond prices will ________, and the nominal interest rate will ________.
A. greater; rise; increase B. less; rise; decrease C. greater; fall; increase D. less; fall; increase
According to the Application, economist John B. Taylor found that the aid to state and local governments which were a part of the 2009 stimulus package were used primarily to
A) increase spending on transfer programs, goods, and services. B) increase spending on goods and services. C) increase spending on transfer programs, but spending on goods and services declined. D) increase spending on infrastructure, but spending on transfer programs declined.
Which of the following will not cause consumption, and as a result, aggregate demand, to increase?
a. an optimistic business forecast of future income growth b. a tax cut c. an increase in consumer confidence d. a tax increase
Some argue that the best response to monopolies is no response at all, because:
A. the creation of regulation may be too difficult. B. no one can ever decide which monopolies to regulate. C. left unchecked, all monopolies eventually shut down. D. they are too powerful to be dealt with effectively.