A market economy depends on market mechanisms to:
a. determine the most efficient way of using resources
b. determine how large the government's budget deficit should be.
c. decide how much government regulation there should be.
d. provide everyone with a minimum level of income.
a
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Baxter International, a manufacturer of hospital supplies, acquired American Hospital Supply, a distributor of hospital supplies. This is an example of
A) a two-dimensional merger. B) a conglomerate merger. C) a vertical merger. D) a horizontal merger.
How do changes in income tax policies affect aggregate demand?
A) Higher taxes increase corporate investment and aggregate demand. B) Higher taxes reduce disposable income, consumption, and aggregate demand. C) Higher taxes increase aggregate supply and thus increase aggregate demand as well. D) Higher taxes increase disposable income, consumption, and aggregate demand.