A tax rate increase always leads to an increase in tax revenue for the government.
Indicate whether the statement is true or false.
Answer: False.
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Alberto purchases ten cups of coffee a week. The amount of money that he holds to purchase ten cups of coffee is the
A) asset demand for money. B) precautionary demand for money. C) money balance demand for money. D) transactions demand for money.
Suppose initially the federal budget is balanced. The economy then enters a period of expansion. What is likely to happen to the federal budget?
A) It will remain balanced. B) It will show a deficit. C) It will automatically stabilize. D) It will show a surplus.
The Fed decreases the quantity of money to counteract
A) positive net exports. B) a federal budget deficit. C) a rise in the unemployment rate. D) a recessionary ga
Microeconomics and macroeconomics are closely linked
a. True b. False Indicate whether the statement is true or false