Which of the following is a macroeconomic question?
A. Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax?
B. Why did a leading computer manufacturer establish call centers in India?
C. Why does a pharmaceutical manufacturer try to lower its production costs?
D. Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous?
Answer: A
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Suppose a government that taxed all interest income changed its tax law so that the first $5,000 of a taxpayer's interest income was tax free. This would shift the
a. supply of loanable funds to the right, causing interest rates to fall. b. supply of loanable funds to the left, causing interest rates to rise. c. demand for loanable funds to the right, causing interest rates to rise. d. demand for loanable funds to the left, causing interest rates to fall.
Marginal social benefits are equal to
A. marginal private benefits + marginal internal benefits. B. marginal private benefits - marginal internal benefits. C. marginal private benefits + marginal external benefits. D. marginal private benefits - marginal external benefits.