A decline in real mortgage rates will lead, other things the same, to ________
A) lower demand for housing
B) tighter financing constraints
C) an increase in residential investment
D) a lower relative price of housing
C
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According to the Laffer curve, we know with certainty that an increase in the tax rate will
A) cause tax revenue to increase. B) cause tax revenue to decrease. C) have no effect on tax revenue. D) cause tax revenue to increase, decrease, or remain unchanged.
When making income comparisons across countries, economists generally prefer to use
What will be an ideal response?
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Mega Corp: TC = 5,000 + 100QBig Inc: TC = 4,000 + 200QWhen each firm produces 8 units, ________ has a lower total cost, and when each firm produces 12 units, ________ has a lower total cost.
A. Mega Corp; Big Inc B. Big Inc; Mega Corp C. Big Inc; Big Inc D. Mega Corp; Mega Corp
Commercial banks create new money:
A. through multiple rounds of lending. B. by issuing checks. C. when they buy government bonds from the Federal Reserve. D. when they increase their desired reserve/deposit ratio.