If Abercrombie & Fitch borrows $8 million from a bank to finance the construction of a new store, this is an example of
A) indirect finance. B) a bond market transaction.
C) direct finance. D) a stock market transaction.
A
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The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________
A) A B) B C) C D) A or B
If the multiplier is 4, equilibrium real GDP is $600 billion, and investment is $25 billion, what will happen if investment increases to $30 billion? Real GDP will:
a. increase to $605 billion b. decrease to $595 billion c. increase to $620 billion d. increase to $624 billion e. decrease to $580 billion
An effective minimum wage law will increase the quantity of labor demanded
a. True b. False Indicate whether the statement is true or false
If the government were to intervene and set the price of a dozen eggs above the market price, then we would expect, relative to the market outcome,
a. an increase in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell. b. an increase in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell. c. a decrease in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell. d. a decrease in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.