Automatic stabilizers create ________ during recessions from increased government spending on welfare and unemployment insurance, and reduced tax revenues, and create _________ during peak growth periods of the economy from reduced government welfare spending and increased tax revenues.

The difference between an import quota and a tariff that results in the same domestic price is

a. none; they are the same b. the quantity demanded is higher under the tariff c. the world price is higher under the quota d. the tariff revenue goes to the domestic government; quota benefits may go to foreigners e. none because both quotas and tariffs are illegal

The quantity supplied of loanable funds

a. is inversely related to the rate of interest b. is directly related to the rate of interest c. affects a firm's MRP of capital d. affects a firm's MPP of capital e. affects the price of the good