The sustainable flow of purchasing power available to an individual is equal to _____
a. the Fisher definition of income.
b. the Haig-Simons definition of income
c. consumption
d. investment
a
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A local government would not be efficient in providing which of the following services?
A. International aid B. Police protection C. Fire protection D. Roads
Refer to Table 11.1. What is the value of personal consumption expenditures?
A) $3,000. B) $1,000. C) $4,350. D) $2,350.
A system of barter has substantial transactions costs because
A) taxes under such a system are generally a large fraction of the value of output. B) traders must spend considerable time searching for trading partners. C) the uncertainties of trade result in high legal fees being incurred to draw up binding contracts. D) the uncertainties of trade result in high insurance premiums.
In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, expansionary fiscal policy does all of the following EXCEPT:
a. increase interest rates. b. increase income. c. increase the IS curve. d. increase inflation.