In the figure above, what would happen to the size of the multiplier if marginal income tax rates were increased?
A) The multiplier would fall in value and might become negative.
B) The multiplier would not change in value.
C) The multiplier would fall in value but would not become negative.
D) The multiplier would rise in value.
E) More information is needed to determine the effect on the size of the multiplier.
C
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Which of the following statements is true?
A) It is easier to defend an overvalued currency than an undervalued currency since it is possible to print domestic currency and not foreign currency. B) It is easier to defend an undervalued currency than an overvalued currency since it is illegal to print domestic currency. C) It is easier to defend an undervalued currency than an overvalued currency since it is possible to print domestic currency. D) It is easier to defend an overvalued currency than an undervalued currency since it is possible to hold large reserves of foreign currencies.
The supply of loanable funds schedule shows that the
A) higher the real interest rate, the more the supply of loanable funds curve shifts rightward. B) higher the real interest rate, the greater the quantity of loanable funds supplied. C) higher the real interest rate, the greater the opportunity cost of supplying loanable funds. D) higher the real interest rate, the lower the profit from making new investment. E) lower the real interest rate, the greater the quantity of loanable funds supplied.