Taxes impact incentives to use resources since they distort relative prices

In the Keynesian model, portfolio decisions of individuals determine the

A) inflation rate. B) money supply. C) interest rate. D) GDP.

By the accelerator hypothesis, if a firm's actual sales jump in one period to a higher maintained level, that firm's net investment

A) also jumps in one period to a higher maintained level. B) gradually drifts upward to a higher maintained level. C) jumps upward and then falls back to zero. D) jumps upward and then falls back part of the way.