The fiscal-policy multiplier will be greater
A) the greater is the interest responsiveness of the demand for money.
B) the smaller is the interest responsiveness of autonomous expenditures.
C) the smaller is the income responsiveness of the demand for money.
D) All of the above tend to make the fiscal-policy multiplier greater.
D
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The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost. The government imposes the pollution tax shown in the above figure. What quantity is produced after the pollution tax is imposed?
A) zero pounds B) 80 million pounds C) 160 million pounds D) more than 160 million pounds E) more than 80 million pounds and less than 160 million pounds
Refer to Figure 7-2. With the tariff in place, the United States produces
A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee.
________ is defined in U.S. law as selling a product in a foreign country at a price that is less than fair value
A) Subsidizing B) Countervailing C) Exporting D) Dumping
Everything else held constant, an increase in financial frictions ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply