A boom in the stock market affects the economy because
A. consumers consume less with their money tied up in assets.
B. interest rates fall.
C. firms invest more as demand grows.
D. the stock market causes the money supply to rise.
Answer: C
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Which of the following represent expansionary fiscal policy?
A) an increase in marginal individual income tax rates B) an increase in average individual income tax rates C) a cut in corporate income tax rates D) a reduction in government spending
The economic way of thinking
A) studies facts without using theories. B) explains how social order and cooperation emerge from the actions of individuals. C) is free of biases and assumptions. D) includes all of the above features.
Which of the following statements is true of a market?
a. An increase in demand, with no change in supply, will increase the equilibrium price and quantity. b. An increase in supply, with no change in demand, will decrease the equilibrium price and the equilibrium quantity. c. A decrease in supply, with no change in demand, will decrease the equilibrium price and increase the equilibrium quantity. d. All of these.
Isoquants reflect the fact that in the long run:
a. inputs can be substituted for each other. b. a fixed set of inputs can produce different levels of output. c. inputs used in production are complementary in nature. d. different levels of input can be used to satisfy a budget constraint.