If government purchases increase and net taxes decrease, _____
a. the price level will fall
b. money supply must rise
c. the aggregate demand curve shifts leftward
d. aggregate supply shifts rightward
e. output and employment will increase
e
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A good is considered to be nonexcludable if
A) your consumption of the good reduces the quantity available for others to consume. B) the producer can keep those who did not pay for the good from consuming the good. C) the producer finds it difficult to keep those who did not pay for the good from consuming the good. D) it is jointly owned by all members of a community.
Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market the next generation computer chip. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost. B) allowed as long as the subsidies do not involve a direct payment to the industry. C) not allowed. D) neither allowed nor disallowed. E) allowed as long as the subsidies do not succeed in creating a new product.
Intergovernmental revenue is an insignificant source of state and local revenue
a. True b. False
Which of the following is an argument of opponents of devaluations?
A) Devaluations cause relatively slow adjustments. B) Participants in foreign exchange markets have a short memory: if the expected devaluation doesn't occur within a short time-period, they will stop expecting it. C) A devaluation causes a nation with fixed exchange rates to lose credibility in the medium run, driving its interest rate higher. D) all of the above E) none of the above