The government a new source of revenue from its ownership of natural resources that is likely to be permanent. As a result, the government surprises everyone by cutting taxes. In response, Jeff increases his spending this year by $1000 and next year by $1000, as well. He spreads his increased spending over time because of
A. the substitution effect.
B. the consumption-smoothing motive.
C. the real interest rate being positive.
D. the Phillips curve.
Answer: B
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Appendix: A Dutch auction implies all of the following except
a. more than one unit sale available b. higher prices later in the auction c. identical expected seller revenue for common value items d. greater expected seller revenue in estate sales with risk-averse bidders
Increases in both human capital per worker and physical capital per worker increase productivity
a. True b. False Indicate whether the statement is true or false
If China's economy maintains a 7% annual growth rate over the next 20 years, about how large will its economy be in 20 years if its current GDP is $12 trillion?
a) $24 trillion b) $29 trillion c) $36 trillion d) $48 trillion
In the United States, government policies with respect to monopolies and collusion are embodied in
A) the U.S. Constitution. B) common law, which the United States adopted from English law. C) the Supreme Court. D) antitrust laws.