In the short-run macro model, which of the following increases when government spending increases?
a. The interest rate
b. Investment spending
c. Taxes
d. Spending on consumer durables
e. The money supply
A
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To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is
A) perfectly elastic. B) perfectly inelastic. C) more elastic than the supply curve. D) both A and B.
Which of the following statements is true of confidence intervals?
A. Confidence intervals in a CLM are also referred to as point estimates. B. Confidence intervals in a CLM provide a range of likely values for the population parameter. C. Confidence intervals in a CLM do not depend on the degrees of freedom of a distribution. D. Confidence intervals in a CLM can be truly estimated when heteroskedasticity is present.