Assuming no change in the effective tax rate on capital, a decrease in the government budget deficit will reduce the current account deficit if and only if the decrease in the budget deficit
A) reduces desired national saving.
B) increases desired national saving.
C) reduces desired national investment.
D) increases desired national investment.
B
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The short-run aggregate supply curve is most likely to shift to the right if ________.
A. productivity decreases B. input prices decrease C. wages increase D. sales taxes increase
In 2012, which of the following countries had the highest share of consumption spending in GDP?
A) the United States B) France C) Germany D) China
Suppose the government wants to discourage excessive consumption of alcohol. It therefore imposes a per-unit tax on alcohol that increases as more alcohol is bought by a consumer at a store. What happens to a consumer's budget at a liquor store (with liters of alcohol on the horizontal axis and a composite good on the vertical) --- assuming the consumer takes only one trip to the store.
A. The vertical intercept decreases and the slope becomes shallower as more alcohol is bought. B. The vertical intercept remains constant but the slope becomes shallower as more alcohol is bought. C. The vertical intercept decreases and the slope becomes steeper as more alcohol is bought. D. The vertical intercept remains constant but the slope becomes steeper as more alcohol is bought. E. None of the above.
A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
a. A decrease in supply b. An increase in demand c. A decrease in demand d. An exception to the law of demand e. An increase in supply