In an open economy, the domestic real interest rate is determined by:
A. domestic saving and domestic investment.
B. domestic investment.
C. domestic saving, domestic investment, and net capital inflows.
D. domestic saving and net capital inflows.
Answer: C
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According to the partisan theory,
a. politicians are viewed as working only for their own welfare. b. there are two parties with flexible goals. c. moderates and liberals often switch political goals. d. macroeconomic policy is not a key focus of most politicians. e. none of the above.
Which of the following is NOT an example of a way in which microeconomic analysis can help in designing environmental policy?
A) Determining the optimal level of vehicle fuel efficiency standards B) Designing laws to provide incentives for firms to implement clean technologies in new vehicles C) Lobbying consumers and firms to reduce consumption of energy D) Examining the tradeoffs between ecological benefits of environmental legislation and its impacts on consumers' standard of living
The total burden of a tax equals tax receipts plus excess burden
a. True b. False Indicate whether the statement is true or false
Which of the following is a "guns or butter" decision?
(A) A school has to decide whether to build a new gym or renovate the auditorium. (B) A man must decide whether to install an alarm system in his house or buy new furniture for the living room. (C) A woman has to decide whether to replace her old car with a new sports car or a family sedan. (D) A country must decide whether to use its steel to build new fighter jets or new sports cars.