Any tax reduction shifts the consumption schedule upward.
Answer the following statement true (T) or false (F)
True
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Consider estimating the effect of the beer tax on the fatality rate, using time and state fixed effect for the Northeast Region of the United States (Maine, Vermont, New Hampshire, Massachusetts, Connecticut and Rhode Island) for the period 1991-2001
If Beer Tax was the only explanatory variable, how many coefficients would you need to estimate, excluding the constant? A) 18 B) 17 C) 7 D) 11
If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
a. Monetary base to rise. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to remain the same.
A rising exchange rate raises U.S. living standards by:
A. discouraging imports. B. encouraging exports. C. helping to hold down inflation. D. causing a balance of trade surplus.
Exports decrease by $500 billion, investment increases by $300 billion, and government expenditure increases by $200 billion. As a result, autonomous expenditures ________ , total expenditures ________ , and equilibrium real GDP ________
A) increases by $3500 billion; increases; increases by more than $300 billion B) decreases by $200 billion; decreases; decreases by more than $200 billion C) increases by $500 billion; increases; increases by more than $500 billion D) decreases by $300 billion; decreases; decreases by more than $300 billion E) is unchanged; is unchanged; is unchanged