Everything else held constant, an increase in marginal tax rates would likely have the effect of ________ the demand for municipal bonds, and ________ the demand for U.S. government bonds
A) increasing; increasing
B) increasing; decreasing
C) decreasing; increasing
D) decreasing; decreasing
B
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Budget lines are drawn on a diagram with the
A) price of the good on the vertical axis and its quantity on the horizontal axis. B) price of one good on the vertical axis and the price of another good on the horizontal axis. C) quantity of the good on the vertical axis and its price on the horizontal axis. D) quantity of one good on the vertical axis and the quantity of another good on the horizontal axis.
If an Industry consists of two large firms, it is known as a(n)
a. monopoly b. perfect competition c. monopolistic competition d. natural monopoly e. duopoly
Antitrust activities by the government:
A. can cause inefficiencies. B. sometimes increase the efficiency of a market. C. are accused of being politically motivated. D. All of these statements are true.