In the case of an increase in government spending where the price level varies while the money wage is fixed, output
a. rises and prices fall by more than if the price level was fixed.
b. falls and price rise by more than if the price level was fixed.
c. rises by more and the price level rises by less than if the price level was fixed.
d. and the price level are fixed.
e. rises and prices fall by more than if the price level was fixed.
E
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Use the information provided in Exhibit 11-4. If a person’s taxable income is $110,000, how much does he pay in taxes?
A) $21,750 B) $33,000 C) $24,750 D) $48,000
Explain what is meant by the "double taxation of dividends"?
What will be an ideal response?
For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. After the loan has been made, individuals become careless with their finances b. Individuals most likely to default are the ones most likely to apply for the loan c. Borrowers investing their loan proceeds differently than the bank requires d. None of the above
Under a tariff, the domestic government gains revenue, but under an import quota it does not, unless it sells the quota rights
a. True b. False