If a specific tax is implemented
A) the firm's average cost curve shifts up, resulting in lower profits.
B) the after-tax marginal cost curve shifts, resulting in lower quantity produced.
C) there is less profit per unit sold.
D) All of the above.
D
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We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that
a. Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation. b. Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York. c. Bond A has a term of 20 years and Bond B has a term of 1 year. d. All of the above are correct.
If real disposable income is $300 billion and real consumer expenditures are $250 billion, it can be assumed that
A. the government is spending the difference. B. the difference is being invested. C. households are saving the difference. D. transfer payments make up the difference.