If Ricardian equivalence holds, the current account will deteriorate in response to.
(a) a tax cut.
(b) a temporary increase in government purchases.
(c) a tax increase.
(d) a permanent increase in government purchases.
Answer: (b) a temporary increase in government purchases.
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In the simple liquidity-preference model, the money supply curve is:
A. vertical, and moves at the sole discretion of the Fed. B. horizontal, and moves at the sole discretion of the Fed. C. vertical, and moves when people change their rate of savings. D. horizontal, and moves when people change their rate of savings
When demand increases,
a. consumers are willing and able to purchase more of the good at every price b. consumers are willing and able to purchase less of the good at every price c. there is a movement to the right along the demand curve d. this is referred to as a change in quantity demanded e. the price will tend to fall
A monopolist who has a ________ and perfectly price discriminates appropriates all consumer surplus as profit.
A. horizontal ATC schedule B. vertical ATC schedule C. demand curve which is the same as its MR curve D. downward-sloping MR curve
Refer to the information provided in Table 22.2 below to answer the question(s) that follow. Table 22.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 22.2. The error for point F is equal to
A. -6. B. -3. C. -1. D. +2.