A decrease in the tax on capital income _______ the real interest rate and ________ investment and economic growth.
Fill in the blank(s) with the appropriate word(s).
decreases; increases
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Give a hypothetical example that shows how monetary policy could fail because of bad timing.
What will be an ideal response?
Refer to the given data. After specialization, Alpha will produce:
A. 60 tons of steel and Omega will produce 45 tons of wheat.
B. 20 tons of steel and Omega will produce 60 tons of wheat.
C. 60 tons of steel and Omega will produce 60 tons of wheat.
D. 30 tons of steel and Omega will produce 30 tons of wheat.
Suppose a professor gives up her teaching job to devote her time to writing textbooks. If the salaries of professors rise, her
a. accounting profit will rise b. accounting profit will fall c. explicit costs will rise d. economic profit from textbooks will fall e. economic profit from textbooks will rise
Why might well-educated economists disagree on appropriate public policy in some situations?