If a country changes its corporate tax laws so that foreign businesses build and manage more business in that country, then the net capital outflow of that country
a. and the net capital outflow of other countries rise.
b. rises and the net capital outflow of other countries fall.
c. falls and the net capital outflow of other countries rise.
d. None of the above are correct.
c
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Assume a perfectly competitive constant-cost industry is initially at long-run equilibrium. Now suppose that a decrease in market demand occurs. After all the long-run adjustments have been completed, the new equilibrium price
A. will be the same as the initial price, and the output will be less. B. will be less than the initial price, but the new output will be greater. C. will be greater than the initial price, but the new output will be less. D. and industry output will be less than the initial price and output.
As the costs associated with deposit outflows ________, the banks willingness to hold excess reserves will ________
A) decrease; increase B) increase; decrease C) increase; increase D) decrease; not be affected
When the percentage change in quantity demanded is numerically less than the percentage change in price, ceteris paribus, demand is:
a) Inelastic. b) Elastic. c) Perfectly elastic. d) Unitary elastic.
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).According to the Application, the reason why the consumer surplus still increases as cable prices rise after satellite TV service is introduced in an area with cable TV service is:
A. the quality of services improves and is larger than the increase in the price of cable services. B. the quality of services improves and is smaller than the increase in the price of cable services. C. the tax revenues that the government receives are larger than the price increase. D. the tax revenues that the government receives are smaller than the price increase.