Supply-side economics is based on the theory that:
a. budget deficits will stimulate demand, output, and employment.
b. budget deficits will lead to higher interest rates, which will weaken their expansionary impact.
c. higher tax rates will increase tax revenues.
d. increases in aggregate supply lower the price level.
d
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Which of the following is an example of opportunity cost not measured by money cost?
A. The time spent eating a business lunch at a restaurant B. The time spent preparing a meal eaten at home C. The time spent studying to obtain an “A” in economics D. The time spent repairing a car in one’s own garage E. All of the responses are correct.
Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
B) Best Treats Introduce and Healthy Snacks Introduce is a Nash equilibrium.
C) There are no Nash equilibria in this game.
D) Best Treats Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
In response to the climate change issue, President Obama
a. pledged to reduce the nation’s GHG emissions by 17 percent below 2005 levels by 2020 b. has vetoed all environmental bills that do not include a cap-and-trade program c. implemented a national carbon tax effective in 2012 d. committed the United States to participating in the EU ETS, starting in 2012
If a British student pays her way to attend Harvard University, her action will:
A) cause the exchange rate of the British pound to rise. B) cause the exchange rate of the U.S. dollar to fall. C) change the supply of dollars in the foreign currency market. D) change the supply of pounds in the foreign currency market.