Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would
a. rise and exports of other industries would increase.
b. rise and exports of other industries would decrease.
c. not change, exports of other industries would increase.
d. not change, exports of other industries would decrease.
b
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This Application illustrates
A) how U.S. domestic manufacturers of auto parts have been adversely affected in recent years. B) that U.S. parts manufacturers are now facing increasing global pressures. C) the trade-offs inherent in a global economy. D) all of the above.
Martha Stewart earns $4,000 and she wants to save it for retirement, which is 10 years away. She can either save it in a taxable account or put it into a Roth IRA. Suppose that Martha can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent. By the time she reaches retirement, how much money would she have in either option? NOTE: Martha has to pay tax on the $4,000, so she cannot put the full amount into either the taxable account or the Roth.
What will be an ideal response?
Planned aggregate expenditure increases when ________ in the income-expenditure model.
A. the government sector is included B. consumption is excluded C. investment is excluded D. the government sector is excluded
How does Keynesian economic theory recommend that fiscal policy be conducted?