Refer to the diagram. Initially assume that the investment demand curve is ID 1 . The crowding- out effect of a large public debt would be shown as a(n):
A. shift of the investment demand curve from ID 1 to ID 2 .
B. leftward shift of the investment demand curve.
C. increase in the interest rate from 4 percent to 6 percent and a decline in investment spending of $5 billion.
D. increase in the interest rate from 6 percent to 8 percent and a decline in investment
spending of $40 billion.
C. increase in the interest rate from 4 percent to 6 percent and a decline in investment spending of $5 billion.
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If a household has a husband, wife, and two kids, has a standard deduction of $12,600, has itemized deductions of $6,650, and personal exemptions of $16,000 (4*$4,000), then the first ________ of income is federal income tax free.
A. $20,650 B. $28,600 C. $13,250 D. $34,250
The main goal of the Clayton Act was to
A. make restraint of trade illegal. B. limit mergers and price-fixing contracts. C. limit competition among small firms. D. make deceptive practices illegal.
Refer to Figure 16-6. With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?
A) an amount equal to the area A + B + C + D + H + G B) an amount equal to the area A + B + C + D C) an amount equal to the area E + F D) an amount equal to the area A + C + H
A bond and stock differ in that a stock is an IOU for a fixed amount and a bond is a portion of ownership.
Answer the following statement true (T) or false (F)