Using the Keynesian model, the effect of an increase in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run
A) a decrease; a decrease
B) a decrease; no change
C) an increase; an increase
D) no change; a decrease
A
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For all goods, the long run demand curve is always more elastic than the short run demand curve
Indicate whether the statement is true or false
Chain-weighted indexes have less bias compared to fixed-weight indexes
a. True b. False Indicate whether the statement is true or false
The fact that a higher standard of living tomorrow can only be achieved by sacrificing consumption today is an example of the:
A. principle of increasing opportunity costs. B. scarcity principle. C. equilibrium principle. D. principle of comparative advantage.
If a lender wants to earn a real interest rate of 3% and expects inflation to be 3%, he/she should charge a nominal interest rate that:
A. is at least 7%. B. equals the real rate desired less expected inflation. C. equals the real rate desired plus expected inflation. D. is anything above 0%.