Crowding out refers to a decrease in government purchases as a result of an increase in private expenditures
Indicate whether the statement is true or false
FALSE
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In a two-country world, the appreciation of the domestic currency shifts
A) the AD curve rightward and the SRAS curve leftward. B) the AD curve leftward and the SRAS curve rightward. C) both the AD curve and the SRAS curve rightward. D) both the AD curve and the SRAS curve leftward. E) the AD curve rightward and does not affect the SRAS curve.
There is a negative relationship between the real rate of interest and investment spending
Indicate whether the statement is true or false
In the dominant firm model as evidenced by the production of iPods by Apple, the entrance of the competitive fringe firms has what effect on the dominant firm?
A) Its price is lower, but it produces more output. B) Its price is lower, and it produces less output. C) Its price is the same, but it produces less output. D) Its price is higher, but it produces more output.
How is the U.S. federal income tax structured?
A. The rate at which income is taxed decreases as income increases B. The rate at which is taxed increases as income increases. C. All taxpayers pay the same tax rate.