In the context of stock markets, “the tail wags the dog” means that a failure of the stock market can drag down the entire economy.
Answer the following statement true (T) or false (F)
True
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Why are consumption taxes relevant for measuring the tax wedge?
What will be an ideal response?
The aggregate money demand depends on
A) the interest rate. B) the price level. C) real national income. D) the interest rate, price level, and real national income. E) the price level and the liquidity of the asset.
Which of the following is FALSE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are usually given a lot of discretion in their decision making c. Profit centers usually largely run themselves d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division
As a result of the increased deficit associated with discretionary fiscal policy, _____
a. both the interest rate and real output fall b. both the interest rate and nominal output rise c. the interest rate falls and real output rises d. the interest rate rises and real output falls e. nominal output rises, real output falls, and the interest rate rises