Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state's revenue and increase employment in the state. If Missouri did so,
A) the prices of goods imported into Missouri would fall.
B) the state's total output would definitely increase.
C) the standard of living within Missouri would decrease.
D) workers with jobs in new firms replacing out-of-state imports would earn high income.
E) other states would begin to dump in Missouri.
C
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The consumption function is the relationship between consumption and
A. disposable income. B. total spending. C. investment. D. planned aggregate expenditure.
The capital stock increases whenever
A) gross investment is exceeds net investment. B) net investment exceeds gross investment. C) gross investment is negative. D) net investment is positive.
The short-run average cost curve shows the lowest possible average cost corresponding to each output level, assuming that all inputs are variable
a. True b. False Indicate whether the statement is true or false
A domestic currency devaluation would generally lead to:
(a) Increased exports in the domestic economy. (b) Increased imports from a foreign economy. (c) Increase in government spending. (d) None of the above.