In a model of the saving rate, which of these relationships is most crucial?
A) the effect of the saving rate on government spending
B) the effect of government spending on the saving rate
C) the effect of the saving rate on taxes
D) the effect of taxes on the saving rate
E) the effect of the saving rate on the real wage
D
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One reason why producers have an incentive to organize in favor of protection is because
A) producer gains are spread across so many firms that no one gets a large share of the benefits. B) producer gains are relatively concentrated. C) there is no real cost to the economy. D) producer gains outweigh consumer losses. E) it is a cheap way to keep their employees happy.
State chartered banks were supposed to be driven out of business by the National Currency Act of 1863 and the National Banking Act of 1864 by
A) imposing a tax on their issuance of state bank notes. B) prohibiting them from having interstate branches. C) prohibiting them from paying interest on demand deposits. D) regulating the amount of interest they could pay on savings accounts.
Which of the following is an example of an automatic stabilizer?
A. Congress legislates lower tax rates to increase consumption and investment. B. Tax rates are increased during a recession to maintain a balanced budget. C. A regressive income tax system reduces tax revenues (as a share of income) as income expands. D. Revenues from the corporate income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.
Tax revenues are an advantage of ________, which are not offered by command-and-control policies.
A. pollution allowances B. tradeable pollution permits C. pollution taxes D. pollution tax credits