Assume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is tripled, the
a. base of the triangle that represents the deadweight loss triples.
b. height of the triangle that represents the deadweight loss triples.
c. deadweight loss of the tax increases by a factor of nine.
d. All of the above are correct.
d
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If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acquired checkable deposits, then the effective monetary multiplier for the banking system will be
A. 3. B. 4. C. 5. D. 6.
When GDP is measured in "current prices" it is known as the
A) real GNP. B) real GDP. C) nominal GNP. D) nominal GDP.
Which of these economic variables is procyclical and coincident?
A) consumer spending B) stock prices C) the government bond spread D) all of the above E) none of the above
Japanese rice farmers are facing the same kind of economic future as American corn farmers have faced
Indicate whether the statement is true or false