Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run
A) a decrease; a decrease
B) a decrease; no change
C) an increase; an increase
D) no change; a decrease
C
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What is meant by inflation targeting? Does the Fed engage in inflation targeting?
What will be an ideal response?
Most entrepreneurs are self-employed
a. True b. False Indicate whether the statement is true or false
Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the following production possibilities for rice and corn.Wat's Production Possibilities ABCDEFRice7506004503001500Corn050100150200250Xat's Production Possibilities ABCDEFRice2,5002,0001,5001,0005000Corn0100200300400500Which of the following statements about the two nations is correct based on the principle of comparative advantage?
A. Xat has a comparative advantage in the production of corn. B. Xat has a comparative advantage in the production of rice. C. Xat should specialize in the production of corn. D. Wat should specialize in the production of rice.
If Fredonia has a closed economy, it ________ with other countries.
A. does not negotiate B. does not trade C. trades D. prevents its citizens from traveling to other countries but trades