Refer to the given graph. A shift of the consumption schedule from C 2 to C 1 might be caused by a(n):
A. increase in real GDP.
B. reverse wealth effect, caused by a decrease in stock market prices.
C. decrease in income tax rates.
D. decrease in saving.
B. reverse wealth effect, caused by a decrease in stock market prices.
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Do food stamps affect the slope of the budget constraint of their recipients or rather shift the budget constraint? Explain
What will be an ideal response?
Suppose the Ivory Coast, a small country, imports wheat at the world price of $4 per bushel. If the Ivory Coast imposes a tariff of $1 per bushel on imported wheat, then, other things equal, the price of wheat in Ivory Coast will increase, but by less than $1
a. True b. False Indicate whether the statement is true or false
Compared to two-party systems, proportional-representation systems are thought to:
A. be much less efficient and lead to very few compromises when voting. B. lead to more centrist policies. C. offer a wider variety of platforms among which voters can choose. D. create unwieldy combinations of policies within one platform.
Everything else held constant, if a central bank makes an unsterilized ________ of foreign assets, then the domestic money supply will decrease and the domestic currency will ________
A) purchase; appreciate B) purchase; depreciate C) sale; appreciate D) sale; depreciate