Two ways to lower the deficit are to
A. raise taxes and raise government spending.
B. lower taxes and lower government spending.
C. raise taxes and lower government spending.
D. lower taxes and raise government spending.
C. raise taxes and lower government spending.
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The aggregate demand effect from a rise in government spending is maximized
A) the lower the level of capital mobility. B) the higher the level of capital mobility. C) when the exchange rate floats freely. D) when the rise is matched by a decrease in the money supply.
The success of a cartel rests upon
A) inducing all members to limit their combined output and charge the same price. B) inducing all members to differentiate their products and charge different prices. C) making exit from the cartel as nearly costless as possible. D) discouraging some firms in the market from joining.
The capital account balance is equal to the
A. Foreign purchases of U.S. assets minus U.S. purchases of foreign assets. B. U.S. purchases of foreign assets minus foreign purchases of U.S. assets. C. Current account balance plus foreign purchases of U.S. assets. D. Current account balance plus U.S. purchases of foreign assets.
Refer to the following figure showing demand and marginal revenue for a monopoly.
At any price above $________ demand is elastic.
A. $5 B. $15 C. zero D. $20 E. $10