The Ricardian equivalence proposition suggests that a government deficit caused by a tax cut
A. raises interest rates.
B. causes a current account deficit.
C. causes inflation.
D. doesn't affect consumption.
Answer: D
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The financial crisis of 2008 was triggered by:
A. a speculative bubble in the U.S. housing market. B. austerity measures introduced by the U.S. government to reduce the federal deficit. C. increased trade with China. D. the economic integration of the European Union.
Whenever the elasticity value for a demand curve is greater than zero, then the demand is labeled as “elastic.”
Answer the following statement true (T) or false (F)
In order to maximize profit, a firm that produces its output in two plants will allocate total output between the two plants so that
A. marginal cost for the firm is equal to the sum of the plants' marginal revenue. B. marginal cost is equal for the two plants. C. marginal revenue is equal for the two plants. D. both a and b E. all of the above
In perfectly elastic supply, the more elastic the supply is, the . . .
What will be an ideal response?