Critical assumptions behind the Laffer curve include a. labor supply is inelastic. b. investment is very responsive to higher savings and lower interest rates. c. the economy is above the marginal tax rate that maximizes tax revenue. d. both b and c. e. all of the above. ANSWER D
Date: September 10th, 2020
Assume that the fixed exchange rate system of 100 pesos = 1 dollar is above the equilibrium exchange rate of 90 pesos= 1 dollar in a flexible exchange rate system. Then the dollar would be a. undervalued and the peso would be overvalued. b. overvalued and the peso would be undervalued. c. revalued. d. depreciated […]
Date: September 10th, 2020
What did the Proclamation of 1763 and the Quebec Act of 1774 represent? (a) A continuation of earlier British land policies, but these were no longer workable or acceptable to the colonists (b) A temporary change in British land policies, but the change was not workable or acceptable to the colonists (c) A permanent change […]
Date: September 10th, 2020
According to the monetarist theory, an increase in government spending would have a. only weak effects on both output and the price level. b. a weak effect on output with a strong effect on the price level. c. a weak effect on the price level but a strong output effect. d. stronger effects on output […]
Date: September 10th, 2020
In September 1929, Roger Babson predicted the collapse of the stock market. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Capital inflows in the balance of payments accounts include a. purchases of financial assets by U.S. residents. b. direct investments in foreign countries. c. indirect investments in foreign countries. d. purchases of U.S. government bonds by foreigners. ANSWER D
Date: September 10th, 2020
Differences in what can help explain the wage gap between U.S. born and foreign born workers employed in the U.S.? (a) Gender (b) Schooling (c) Immigration policy (d) All of the above ANSWER (b)
Date: September 10th, 2020
With regard to British trade and commercial policies, all of the following are true except (a) British trade and commercial policies had been somewhat beneficial, from the colonials’ point of view, but now (the 1770s) they had become intolerable. (b) These policies, unlike land, did not take away American rights so much as they attempted […]
Date: September 10th, 2020
In the modern Keynesian model, velocity a. varies positively with the level of the interest rate but not with income. b. varies positively with the level of the interest rate and with income. c. is constant. d. varies in the short run but is constant in the long run. e. none of the above […]
Date: September 10th, 2020
Many railroads received government subsidies and land grants and, thus, were influenced by the government. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
