If investment depends on the interest rate, a decrease in net taxes will cause aggregate output to ________ than if investment doesn'?t depend on the interest rate.
A) increase by more
B) increase by less
C) decrease by more
D) decrease by less
Answer: B) increase by less
You might also like to view...
A teacher tells her students that she will give them a riddle that each student has to solve separately and then announce his or her answer in the class. Those who get the correct answer will get a gift
Kate, a student in the class, decides to give the answer that most students give, although the answer she gets from solving the riddle is quite different. This is an example of ________. A) adverse selection B) moral hazard C) a pecuniary externality D) an information cascade
Rational expectations are more accurate than adaptive expectations, ________
A) on average B) always C) because they require less information D) except when policies have changed
Consumers value the product-specific services for a new smartphone at $20 and the marginal cost to the retailers for providing the product-specific services is $20. If the retailers provide the product-specific services, which of the following is true?
A) The shift in the market demand will equal the shift in the market supply. B) The shift in the market demand will be exactly double the shift in the market supply. C) The shift in the market supply will exceed the shift in the market demand. D) The shift in the market demand will exceed the shift in the market supply.
An increase in an economy's capital stock increases its future productive capacity
a. True b. False Indicate whether the statement is true or false