Which of the following is a correct statement of the impacts of a lump-sum tax?
A. Disposable income will increase by the amount of the tax and consumption at each level of
GDP will decline by the amount of the tax multiplied by the MPC.
B. Disposable income will decline by the amount of the tax and consumption at each level of
GDP will decline by the amount of the tax multiplied by the multiplier.
C. Disposable income will decline by the amount of the tax and consumption at each level of
GDP will also decline by the amount of the tax.
D. Disposable income will decline by the amount of the tax and consumption at each level of
GDP will decline by the amount of the tax multiplied by the MPC.
D. Disposable income will decline by the amount of the tax and consumption at each level of
GDP will decline by the amount of the tax multiplied by the MPC.
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A demand curve that is perfectly inelastic is
A. horizontal. B. vertical. C. at a 45 degree angle. D. parallel to the X-axis.
If the p-value is 10%, then the
A. level of confidence is 90%. B. level of significance is 10%. C. probability of a Type I error is 90%. D. both a and b E. null hypothesis should not be rejected if the level of significance is 5%
If it is NOT profitable for more than one firm to be in an industry, we have an example of
A. monopoly due to economies of scale. B. pure competition. C. monopoly due to ownership of key resources. D. monopoly due to governmental entry restrictions.
Which of the following tools of monetary policy is used least often?
A) open market operations B) setting the required reserve ratio C) setting the discount rate D) acting as a lender of last resort