In the classical model, beginning from an equilibrium in which the government is running a budget surplus,
a. this will lower the wage rate
b. the demand for loanable funds will be horizontal
c. an increase in government spending will crowd out more than an equal amount of private spending
d. an increase in government spending will crowd out an equal amount of private spending
e. an increase in government spending will crowd out less than an equal amount of private spending
D
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Which of the following is TRUE of an excise tax?
A) An excise tax is always a unit tax. B) An excise tax is levied on purchases of particular good or service. C) An excise tax is based on an individual's income. D) Imposing an excise tax shifts the market demand curve.
It would be undesirable to reduce the executive's compensation if her earnings are due largely to:
A. performance. B. the employee's demand. C. the owner's demand. D. a flat fee.
Oligopolists compete on price but not quality.
Answer the following statement true (T) or false (F)
How is the impact of contractionary monetary policy different in an open economy than in a closed economy?
What will be an ideal response?