The latest news report stated that the housing market is making a comeback and that house prices are on the rise. This information is likely to:
A. increase demand for houses now due to a change in expectations of future prices.
B. decrease demand for houses now due to a change in expectations of future prices.
C. have no effect on the current housing market, but will increase demand in the future.
D. have no effect on the current demand for housing, but will decrease current supply.
A. increase demand for houses now due to a change in expectations of future prices.
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The above figure illustrates
A) a recessionary gap. B) a full-employment equilibrium. C) an inflationary gap. D) an equilibrium at the economy's physical limits.
Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a
A) regressive income tax. B) negative income tax. C) progressive income tax. D) proportional income tax.
High interest rates might cause a corporation to ________ building a new plant that would provide more jobs
A) complete B) consider C) postpone D) contemplate
A price floor above the market clearing price typically results in I. an excess quantity supplied II. a shortage III. an excess quantity demand
A) I only B) II only C) III only D) II and III only