A change in a fixed tax will cause the consumption schedule to
a. become steeper.
b. become flatter.
c. shift in a parallel manner.
d. remain fixed as the economy moves along the schedule.
c
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The owner of a firm wants some advice on how to increase productivity. Suggest three ways the entrepreneur could increase labor productivity through improving technology
What will be an ideal response?
When two goods are substitutes for each other, the cross price elasticity of demand
A) will be negative. B) will be zero. C) may be either positive or negative. D) will be positive.
Why can corporations issue bonds that mature long in the future, but partnerships and single-owner firms can only borrow for relatively short periods of time?
An decrease in the money supply will lead to a ______.
a. higher interest rate in the short run b. lower interest rate in the short run c. higher interest rate than the original in the long run d. lower interest rate than the original in the long run