Refer to the diagram. The degree of built-in stability in the economy could be increased by:
A. reducing government purchases so that the purchases line shifts downward but parallel to its present position.
B. changing the tax system so that the tax line is shifted downward but parallel to its present
position.
C. changing the tax system so that the tax line has a greater slope.
D. altering the government expenditures line so that it has a positive slope.
C. changing the tax system so that the tax line has a greater slope.
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In a closed economy, if Y remained the same, but G rose, T rose by the same amount as G, and C fell but by less than the increase in T, what would happen to private and national saving?
a. national saving would fall and private saving would rise b. national saving would rise and private saving would fall c. both national saving and private saving would fall d. None of the above is correct.
Describe a scenario of a family leasing a rent-control apartment. In your description, show the various pros and cons of rent control.
What will be an ideal response?
Net interest income for a bank is:
A. the difference between interest income and total expenses. B. the difference between gross income and net income after taxes. C. the difference between interest income and interest expense. D. the interest banks earn from uses of funds.
Which of the following types of firms should expect a higher rate of return?
a. an auto dealership b. a biotech pharmaceutical firm c. a manufacturer of screws and bolts d. a paper products firm e. all of the above