If the expenditure multiplier is 6.5, the tax multiplier is
a. 7.5
b. 5.5
c. -5.5
d. -6.5
e. -7.5
C
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Taxing firms that emit pollutants is one way to reduce pollution.
Answer the following statement true (T) or false (F)
Trade restrictions are often motivated by a desire to save domestic jobs threatened by competition from imports. Which of the following counter-arguments is made by economists who oppose trade restrictions?
A) Trade restrictions benefit consumers in the short run but not in the long run. B) Statistics show that trade restrictions actually do not save jobs. C) Consumers pay a high cost for jobs saved through trade restrictions. D) Trade restrictions have a limited impact because most Americans prefer domestic goods over imports.
What is new about environmental problems today is
a. that for the first time in history we have environmental problems. b. the increased rate at which air and water pollution is occurring in the United States. c. the amount of attention the community now gives them. d. that environmental problems with pollution and garbage disposal have almost completely disappeared.
When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis, an increase in the interest rate
A. decreases the quantity demanded of money. B. does none of these answers. C. increases the quantity demanded of money. D. increases the demand for money. E. decreases the demand for money.