As the economy expands, tax revenues _____ and transfer payments _____.
A. fall; rise
B. fall; fall
C. rise; fall
D. rise; rise
C. rise; fall
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An example of a government policy to increase human capital formation is:
A. the provision of publicly-funded education. B. the construction of an interstate highway system. C. government support for basic research. D. maintaining a well-functioning legal system.
The euro is a composite currency; its value is an average of the changing values of several national currencies
a. True b. False Indicate whether the statement is true or false
Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?
a. Open market sales of government securities by the central bank. b. A reduction in the discount rate. c. A reduction in the reserve ratio by the central bank. d. A reduction in the preferred asset ratio for currency in circulation (C/D), due to a shift in household preferences. e. All of the above increase the supply.
A tariff is a tax placed on
a. an exported good and it lowers the domestic price of the good below the world price. b. an exported good and it ensures that the domestic price of the good stays the same as the world price. c. an imported good and it lowers the domestic price of the good below the world price. d. an imported good and it raises the domestic price of the good above the world price.