Based on the graph showing the effects of a government budget deficit, when the deficit makes the supply shift from S1 to S2, the real interest rate would ______.
a. remain at r1
b. remain at r2
c. rise from r1 to r2
d. drop from r2 to r1
c. rise from r1 to r2
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For a person earning $15,000, the marginal tax amount from 10,001 to $15,000 is:
A. $500
B. $750
C. $1,750
D. $2,000
Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A. Both the labor force and the population increased. B. Winter storms cause factories in the north to be shut down for several weeks. C. Unusually good weather causes the wheat crop to be larger than normal. D. Government spending increased causing aggregate demand to increase.
Which of the following is NOT an example of investment in human capital?
A) a medical student's internship B) the purchase of a personal computer for playing games C) A mechanic attends a training workshop on a new type of engine. D) Johnny learns how to read.
Autocorrelation of the error terms
A) makes it impossible to calculate homoskedasticity only standard errors. B) causes OLS to be no longer consistent. C) causes the usual OLS standard errors to be inconsistent. D) results in OLS being biased.