If the government decreases taxes, which of the following would occur?
a. An increase in GDP, an increase in the price level, an increase in money demand, and an increase in the interest rate
b. An increase in GDP, a decrease in the price level, an increase in money demand, and a decrease in the interest rate
c. A decrease in GDP, a decrease in the price level, a decrease in money demand, and a decrease in the interest rate
d. A decrease in GDP, a decrease in the price level, an increase in money demand, and an increase in the interest rate
e. An increase in GDP, an increase in the price level, a decrease in money demand, and a decrease in the interest rate.
A
You might also like to view...
In their relationship with stockholders, a firm's managers act
A) as agents. B) as principals. C) in loco parentis. D) as proprietors.
Total revenue is the same for every price-quantity combination along a unit elastic demand curve
a. True b. False
If a firm's total cost rises as output rises, then
a. marginal cost is positive b. profit cannot be maximized c. total cost is minimized d. marginal cost equals marginal revenue e. the firm should shut down in the short run
How are the marginal revenue product (MRP) curve and the demand curve for capital related?
a. MRP slopes downward, forcing demand to rise. b. The MRP and demand curves are the same. c. MRP slopes downward, pushing demand toward equilibrium. d. MRP crosses the demand curve at its lowest point.