If an excise tax is imposed on a good or service,
a. the supply curve shifts upward
b. the supply curve shifts downward
c. the price paid by consumers decreases
d. the net price received by sellers increases
e. the quantity produced and sold increases
A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
When the Fed lowers the federal funds rate, the quantity of money ________ and the supply of loanable funds ________
A) increases; does not change B) decreases; increases C) increases; decreases D) increases; increases E) decreases; decreases
From the late 1970s to the late 1980s, Hall (1994) finds that leverage buyouts most commonly take place among firms
(a) in the volatile tech industry. (b) facing steep global competition. (c) that are unstable. (d) like those mentioned in all of the above.
In the long run, the primary effect of rapid monetary growth is
a. lower nominal interest rates. b. reduced unemployment. c. inflation. d. an increase in real output.