When comparing tax and spending policy by the government, in general we note that the tax policy multiplier effect relative to the spending multiplier should be:
A. not comparable.
B. equivalent.
C. smaller.
D. larger.
Answer: B
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The most important economic benefit from specialization is that it
A) makes it possible for an economy to begin using money. B) leads to an increase in the standard of living in an economy. C) makes barter possible. D) eliminates the need for financial markets.
When bond prices rise,
A. stock prices must fall. B. interest rates must fall. C. interest rates must rise. D. bankruptcies generally increase.
Which of the following scenarios would likely entice entrepreneurs to increase the amount of borrowing from financial institutions?
A. More competitors entering the market B. Optimism about the good or service they produce C. Anticipation of more tax regulations for small business owners D. Raised interest rates
The World Trade Organization (WTO) was organized as a successor to the
A) IMF. B) UN. C) UNCTAD. D) GATT. E) the World Bank.