The concept that increased government spending will lead to lower investment and consumer spending is referred to as the

Suppose the price of lumber decreases. In the market for new homes, we would expect which of the following to occur?

A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.

Which of the following is FALSE?

A) Tariffs are a relatively easy tax to administer and often form an important part of revenue for low-income countries. B) Taxes on income, sales, and property require more complex accounting systems than do tariffs. C) Low-income countries often have large informal markets with the sales of many goods and services not being recorded, which makes it difficult to apply many kinds of taxes. D) Tariffs are not an attractive tax option for most low-income countries, so they mostly rely on quota licenses for revenue.