Keynesians tend to believe that
A. laissez-faire policies stabilize market economies.
B. recessions are temporary.
C. expansionary government spending and tax cuts are cures for recessions and depressions.
D. in the short run, aggregate supply should be manipulated to stabilize the economy.
C. expansionary government spending and tax cuts are cures for recessions and depressions.
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If the dollar interest rate is 4 percent, the euro interest rate is 6 percent, then
A) an investor should invest only in dollars. B) an investor should invest only in euros. C) an investor should be indifferent between dollars and euros. D) invest only in dollars if the exchange rate is expected to remain constant. E) invest only in euros if the exchange rate is expected to remain constant.
According to the graph shown, if this economy were open to free trade, and decided to impose a tariff, the domestic quantity supplied would increase from:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. 815 to 1500.
B. 815 to 1150.
C. 250 to 500.
D. 250 to 815.
Which of the following is true of the market equilibrium in the presence of negative externalities? a. It is the intersection of the social cost curve and the demand curve
b. It is the intersection of the private cost curve and the demand curve. c. Net social welfare is maximized at the equilibrium. d. Market output is less than the socially optimal output at the equilibrium.
Josiah installed a metal sculpture in his front yard. A negative externality arises if the sculpture a. increases the value of other properties in the neighborhood. b. decreases the value of Josiah's home
c. is visually appealing to Josiah's neighbors. d. creates a safety hazard for neighborhood children.