In which of the following cases does the aggregate-demand curve shift to the right?
a. The price level rises, causing the interest rate to fall.
b. The price level falls, causing the interest rate to fall.
c. The money supply increases, causing the interest rate to fall.
d. The money supply decreases, causing the interest rate to fall.
c
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The quantity theory of money predicts how changes in
A) the price level affect nominal GDP. B) the price level affect real GDP. C) the quantity of money affect the price level. D) real GDP affect the nominal GDP.
Refer to Figure 9-5. The increase in domestic producer surplus as a result of the tariff is equal to
A) $11.25 million. B) $18 million. C) $32.5 million. D) $45 million.
A major source of revenues for state and local governments is _____
a. income taxes b. payroll taxes c. intergovernmental revenues d. estate taxation
The major advantage of the corporation is
A. limited liability for owners. B. greater profit incentive than the other forms of business organization. C. lower taxes for owners, who are taxed only once. D. ability of owners to have hands-on management of the firm.