Using the standard 45° line diagram, how does an increase in investment spending effect the expenditure schedule?
A. It shifts the expenditure schedule downward.
B. It shifts the expenditure schedule upward.
C. It increases the slope of the expenditure schedule.
D. It decreases the slope of the expenditure schedule.
Answer: B
You might also like to view...
A local government currently has a tax base of $10 billion and a tax rate of 10 percent. If the tax rate is increased to 12 percent, the tax base becomes $8.5 billion. If the goal is to maximize tax revenues the tax rate should be
A) raised above 12 percent. B) kept at 10 percent. C) raised to 12 percent. D) abolished.
One key characteristic that is distinctive of an oligopoly market is that
a. the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve. b. the decisions of one seller often influence the price of products, the output, and the profits of rival firms. c. there is only one firm that produces a product for which there are no good substitutes. d. there are many sellers in the market and each is small relative to the total market.
When you are able to supply others with goods and services they value highly relative to your opportunity costs,
A) both you and those with whom you trade will gain. B) you will gain at the expense of others. C) neither you nor those with whom you trade will gain. D) others will gain at your expense.
Suppose the production function is Q = min{3K, L}. How much output is produced when 6 units of labor and 3 units of capital are employed?
A. 9 B. 3 C. 6 D. None of the statements is correct.