The producer of compliments may want to advertise them together
Indicate whether the statement is true or false
T More "bang for the buck" may be achieved by advertising the complementary products together.
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Taxes can have an important effect on
A) saving. B) economic growth. C) the labor supply. D) all of the above
In the short run, the intersection of the aggregate demand and the short-run aggregate supply curves,
A) determines the equilibrium price level. B) is a point where there is neither a surplus nor a shortage of goods. C) determines the equilibrium level of real GDP. D) All of the above answers are correct.
An economy has a fixed price level, no imports, and no income taxes. An increase in autonomous expenditure of $2 trillion increases equilibrium expenditure by $8 trillion
Calculate the multiplier and explain what happens to the multiplier if an income tax is introduced.
When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to make any loans but to hold excess reserves instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $1 million. B) the liabilities of the bank decrease by $1 million. C) reserves increase by $200,000. D) liabilities increase by $200,000.