Increases real GDP
What will be an ideal response?
decrease in interest rates
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What is a rent ceiling and what are its effects if it is set above the equilibrium rent?
What will be an ideal response?
A tax that is imposed at each stage of production is a
a. sales tax b. excise tax c. high-incidence tax d. value-added tax e. none of the above
A good time for an American to hold German stocks, ceteris paribus, is when the
A. Euro is stable compared to the U.S. dollar. B. The return in the German stock market has no relationship to the value of the dollar compared to the euro. C. U.S. dollar appreciates in value compared to the euro. D. U.S. dollar depreciates in value compared to the euro.
To correct for negative externalities, the government
A) should allow the price system do the correction. B) can impose a tax. C) can provide a subsidy to consumers. D) should create a public good.