Using expansionary policies to combat a recession would
A) decrease discretionary spending. B) increase federal revenue.
C) increase a budget surplus. D) increase a budget deficit.
D
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The price of gasoline rises by 33 percent to $3.50 a gallon and stays at that price for the next two years. The quantity of gasoline demanded two years from now will be
A) the same as one month after the price hike. B) greater than one month after the price hike. C) less than one month after the price hike. D) the same as it would be if the price hike had never occurred.
When consumers' incomes increased 6 percent, the quantity of wine bought increased 12 percent. This result means
A) wine is a luxury. B) the demand for wine is income inelastic. C) wine is a necessity. D) wine is an inferior good.
If Macroland's MPC is 0.8, then we know MPS = 1.8 from the relation MPS = 1 + MPC
Indicate whether the statement is true or false
Which of the following statements is true with respect to the concept of dumping in international trade?
a. Dumping is designed to sell off surplus goods, especially agricultural goods. b. Dumping leads to higher competition in the long run. c. Dumping is illegal in the United States. d. Dumping creates toxic wastes in the importing country. e. Dumping can only be practiced by a monopolist.