If the federal government announces a tax cut, which of the following is most likely in the short run?
a. A decrease in output, an increase in money demand, and an increase in the interest rate
b. An increase in output, a decrease in money demand, and a decrease in the interest rate
c. A decrease in output, a decrease in money demand, and a decrease in the interest rate
d. An increase in output, an increase in money demand, and a decrease in the interest rate
e. An increase in output, an increase in money demand, and an increase in the interest rate.
E
You might also like to view...
Which of the following statements is true?
A) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. C) Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. D) All individuals in both countries are made better off as a result of international trade.
Refer to Figure 6.2. The situation pictured is one of
A) constant returns to scale, because the line through the origin is linear. B) decreasing returns to scale, because the isoquants are convex. C) decreasing returns to scale, because doubling inputs results in less than double the amount of output. D) increasing returns to scale, because the isoquants are convex. E) increasing returns to scale, because doubling inputs results in more than double the amount of output.
Which of the following contributed to the severity of the Great Depression in the 1930s?
a. constant structural changes that created uncertainty and undermined markets b. the Fed's policy of rapid monetary expansion during the early 1930s c. a reduction in tariffs protecting many U.S. industries d. a substantial tax rate reduction, which led to large deficits and high interest rates during the early 1930s
What is the opportunity cost of going from point D to point C?
