An increase in the marginal tax rate
A) decreases the expenditure multiplier but cannot make it negative.
B) has no effect on the expenditure multiplier.
C) can either increase or decrease the expenditure multiplier.
D) increases the expenditure multiplier.
E) decreases the expenditure multiplier and can make it negative.
A
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Which of the following can result in job rationing?
i. minimum wage ii. union wage iii. diminishing returns A) i, ii, and iii B) i and ii C) iii only D) i only E) ii only
Dumping is defined as the situation in which
A) foreign producers sell a product at a price below the cost of production. B) domestic producers are protected by tariffs. C) domestic producers sell a product at prices below the cost of production. D) foreign producers sell a product at a price above a fair level. E) domestic producers cut production to drive up domestic prices.