If the size of a tax triples, the deadweight loss increases by a factor of six
a. True
b. False
Indicate whether the statement is true or false
False
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Ultimately, tariffs ________ prices for imported goods and ________ prices for domestic goods
A) raise; raise B) raise; lower C) raise; do not affect D) do not affect; do not affect
If U.S. net exports are negative,
a. U.S. consumers are spending less on foreign goods than foreign consumers are spending on U.S. goods b. U.S. consumers are spending more on foreign goods than foreign consumers are spending on U.S. goods c. the government must promote imports to balance international trade d. U.S. consumers are spending more on foreign goods than they are spending on U.S. goods e. U.S. disposable income is low
The substitution effect and the output effect work in the
A. same direction some of the time. B. same direction all of the time. C. opposite direction some of the time. D. opposite direction all of the time.
First, briefly explain what is meant by the policy mix. Second, explain what effect different policy mixes might have on the level of output, investment, and the interest rate
What will be an ideal response?