When the U.S. government removes investment tax credits:
a. consumption spending falls.
b. the return on investment increases.
c. capacity utilization in the economy expands.
d. the cost of capital increases.
e. technological innovation advances more rapidly.
d
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for ramen noodles, an inferior good. Which panel describes what happens in this market as a result of an increase in income?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
When the economy is operating well below capacity, an increase in spending tends to be reflected primarily in a(n):
a. lower level of employment. b. increase in price. c. lower level of output. d. higher level of output and employment. e. increase in business failures.
A currency has depreciated in value if it takes more of a foreign currency to buy it
Indicate whether the statement is true or false
Since World War II, tariff reductions have occurred in large part because of negotiations under the:
A. Industry and Trade Administration Act. B. Employment Act. C. Monetary Control Act. D. General Agreement on Tariffs and Trade.