Which of the following policies would increase the demand for loanable funds and thus investment spending?
a. A reduction in the investment tax credit.
b. An increase in the corporate profits tax.
c. A reduction in the capital gains tax.
d. An increase in the investment tax credit.
e. An increase in transfer payments.
D
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When Airbnb customers in Malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to
A) decrease producer surplus and decrease deadweight loss. B) decrease consumer surplus and increase deadweight loss. C) maximize consumer surplus and minimize producer surplus. D) increase consumer surplus and increase producer surplus.
The marginal cost of labor for a perfectly competitive firm is the
a. change in total revenue that results from employing an additional worker b. wage rate c. marginal revenue product curve d. demand curve for labor e. marginal physical product of labor
If a firm with total revenue of $900,000 shuts down, we may conclude that its variable costs are _______.
Fill in the blank(s) with the appropriate word(s).
Hyperinflation in the US is caused mostly by
a. excessive money supply growth b. Contractionary monetary policy c. a "weak" or depreciated dollar d. US trade barriers, such as tariffs and import quotas