Under the liquidity premium theory, a flat yield curve indicates that investors expect future short-term rates to

If the government provides a subsidy of $1 per hour to employers for hiring workers, ________

A) the equilibrium real wage will increase B) labor demand will decrease C) the equilibrium employment will decrease D) labor supply will increase

When the economy slows down and national income falls, the government will have ________ tax revenue to fund programs

A) about the same B) a rapid increase in C) more D) less