Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run.
A. a decrease; no change
B. an increase; an increase
C. no change; a decrease
D. a decrease; a decrease
Answer: B
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If the price of gasoline increases from $2.50 per gallon to $3
00 per gallon and the quantity demanded goes down from 120 million gallons per week to 115 million gallons per week, the absolute value of price elasticity of demand in that price range is approximately A) 0.23. B) 4.35. C) 0.93. D) 2.34.
For direct price discrimination to work, the firm
a. Must be able to identify members of the low value group b. Charge the low-value group lower prices than the rest c. Prevent the low-value group from reselling their low priced goods to higher-valued group d. All of the above
Mutually beneficial trade is possible because of differing marginal utilities
a. True b. False Indicate whether the statement is true or false
Other things being equal, the demand curve for low-skilled workers ________ the demand curve for high-skilled workers.
A) lies below B) lies above C) is the same as D) is not comparable to E) at high wages lies below and at low wages lies above