The MPC can be used to predict the effect of a tax increase
a. True
b. False
Indicate whether the statement is true or false
True
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A public choice is
A) a decision that affects one person. B) a decision that affects no one. C) a decision made in public. D) a decision that affects an entire society.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more positive (or less negative). b. The real risk-free interest rate falls, and current international transactions become more negative (or less positive). c. The real risk-free interest rate rises, and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). e. There is not enough information to determine what happens to these two macroeconomic variables.
The portion of Federal Spending devoted to national defense has
A. decreased markedly with small increases during Vietnam, the early 1980s, and 2001. B. remained constant since 1960. C. bounced around with no apparent pattern. D. risen constantly since 1960.
If a U.S. company operates within a competitive environment and chooses to offshore part of its production process, the resulting change in the firm's costs should shift the ______________ curve for its product ___________________, thus _____________ the price of the product being produced
A) supply; leftward; lowering B) supply; rightward; raising C) demand rightward; raising D) supply; rightward; lowering