Mr. and Mrs. Nakama were paying $6,000 taxes on a combined taxable income of $40,000. When they both received pay increases, they found themselves in a higher tax bracket (28 percent). Their average tax rate
A. Decreased.
B. Increased to 15%.
C. Increased to between 15% and 28%.
D. Increased to 28%.
C. Increased to between 15% and 28%.
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Monetary policy has ________ impact on the long-run Phillips curve
A) a positive B) no C) a negative D) an unpredictable
If currency outstanding equals $500 million, checkable deposits equal $2 billion, reserves equal $200 million, and the required reserve ratio is 0.10, the money multiplier equals
A) 1.14. B) 3.57. C) 4.35. D) 5.
A firm that is a monopolist in the output market and a monopsonist in the input market
A) will hire the same amount of labor as if perfect competition prevailed in both markets, but pay a lower wage. B) will restrict the level of output but not that of employment compared to the perfectly competitive case. C) will hire less labor but pay the same wage compared to the perfectly competitive case. D) will hire less labor and pay a lower wage compared to the perfectly competitive case.
Are forecasts of economic activity accurate enough to permit “fine-tuning” of the economy?
A. No, forecasting is so inaccurate that it should be abandoned. B. No, forecasts are not accurate enough for this. C. Yes, forecasts are accurate and reliable enough for this. D. Yes, at least most of the time.