Assume the MPC is 0.75, taxes increase by $100 billion, and government spending increases by $100 billion. Aggregate demand will
A. Increase by $100 billion.
B. Decrease by $400 billion.
C. Increase by $400 billion.
D. Not change.
Answer: A
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When a quota on a product is removed, this policy action
A. benefits consumers of the product. B. hurts nations exporting the product. C. benefits the government. D. benefits domestic producers of the product.
A preliminary conclusion about welfare reform is that
a. work requirements do seem to yield substantial declines in welfare caseloads b. work requirements cause welfare caseloads to increase c. such reform can only be instituted when the economy is strong d. welfare can be reformed even when the economy is weak e. welfare rolls decline faster when the economy is weak because more people need income during those times
An asset's price and rate of return:
A. are independent of each other. B. can be either inversely or directly related. C. are inversely related. D. are directly related.
Refer to the information provided in Table 14.1 below to answer the question that follows. Table 14.1B's Strategy ?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. Firm A does not have a dominant strategy.
Answer the following statement true (T) or false (F)