A permanent marginal tax decrease is likely to
A) shift the short-run aggregate supply curve to the left and the long-run aggregate supply curve to the right.
B) shift both the short-run and the long-run aggregate supply curves to the left.
C) shift the short-run aggregate supply curve to the right, and the long-run aggregate supply curve to the left.
D) shift both the short run and the long run aggregate supply curves to the right.
D
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If you take out a bank loan prior to unanticipated inflation
A) your bank will gain at your expense. B) you will gain at the expense of your bank. C) it will be harder for you to repay the loan because of the inflated dollar. D) neither you nor your bank will be affected, because the loan was made prior to the inflation.
The expectation of future revaluation causes a balance of payments crisis marked by
A) a sharp rise in reserves and a fall in the home interest rate below the world interest rate. B) a sharp fall in reserves and an even bigger fall in the home interest rate below the world interest rate. C) a sharp fall in reserves and a rise in the home interest rate above the world interest rate. D) a sharp rise in reserves and an even greater rise in the home interest rate above the world interest. E) a sharp fall in reserves and an unchanged home interest rate.
In an ultimatum game
A) non-profit-maximizing behavior often occurs. B) players move simultaneously. C) players act in an economically rational way. D) one player receives nothing.
The combining of First Union National Bank and The National Bank of Memphis is an example of
A) a vertical merger. B) a horizontal merger. C) a downstream formation. D) a conglomerate merger.