ECON252 Interim Exam #1 10-03-2013 - PINK

Whichofthe

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Unformatted text preview: Which of following events would cause an increase in investment and a decrease in interest rates? A. The tax rate on interest and dividend income increased. B. The government gives a tax credit to companies who build a factory. C. The government goes from a balanced budget to a surplus. D. The government goes from a balanced budget to a deficit. E. [None of the above] 20. What happens in the market for coffee if a credible study shows that drinking three cups of coffee every day has long term benefits, such as a decreased risk of cancer? A. Supply does not change and quantity sold increases. B. Demand increases and the effect on quantity sold is ambiguous. C. Demand does not change and quantity sold increases. D. Supply increases and quantity sold increases. 21. You are driving to Chicago next weekend to visit some friends. You are trying to decide if you want to attend the Chicago Bears football game while you are in town. Which of the following should not be included in the cost of attending the game? A....
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