A decrease in aggregate demand as a consequence of government decisions to alter its levels of expenditure and revenues involves which of the following?
a. Decreases in spending.
b. Increases in tax rates and collections and decreases in spending.
c. Decreases in tax rates, collections, and spending.
d. Increases in spending and decreases in tax rates and collections.
Answer: c. Decreases in tax rates, collections, and spending.
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FIRREA increased the core-capital leverage requirement for thrift institutions from 3% to
A) 8%. B) 5%. C) 10%. D) 25%
If a country's saving rate increases, then in the long run
a. productivity is higher but real GDP per person is not higher. b. real GDP per person is higher but productivity is not higher. c. productivity and real GDP per person are both higher. d. neither productivity nor real GDP per person is higher.
What is the difference between "shutting down temporarily" and "exiting the industry"?
What will be an ideal response?
Which of the following is an example of a Pigovian tax?
A) payments by utilities to obtain tradable emission allowances B) a payroll tax C) payments for licenses to pollute D) a tax imposed on a utility that internalizes the cost of externalities caused by the utility