The Kennedy tax cut of 1964 included an investment tax credit that was designed to
a. increase aggregate demand in the short run and aggregate supply in the long run.
b. increase aggregate supply in the short run and aggregate demand in the long run.
c. only increase aggregate supply in the long run.
d. only increase aggregate demand in the short run.
a
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If the cross elasticity of demand between two goods is negative, are the goods substitutes or complements?
What will be an ideal response?
An inferior good
a. has a negative income elasticity. b. is one where the demand curve shifts to the left when income goes up. c. exists only in theory. d. is a low-quality good. e. Both a and b are true.
Most entrepreneurs are self-employed
a. True b. False Indicate whether the statement is true or false
A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
a. $10 million b. $0 c. $5 million d. $15 million