When income is $15,000, the amount of income income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The marginal tax rate in this case is
A) 20 percent.
B) 13.3 percent.
C) 15 percent.
D) 25 percent.
A
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The income generated from the sale of the goods and services produced in the economy and paid to the individuals and businesses who supply the factors of production is called:
A) GDP. B) GNP. C) national income. D) NNP.
If the public expects the incumbent administration to stimulate the economy shortly before an election:
a. the unemployment rate will fall at the cost of higher inflation. b. the economy will move up the short-run Phillips curve. c. lower inflation will prevail, and the rate of unemployment will remain unchanged. d. the economy will immediately move up the long-run Phillips curve. e. neither inflation nor the unemployment rate will change.
The Fed's principal decision-making body, where the Fed exercises monetary control over the economy through a 12-person committee that includes all seven members of the Board of Governors, is known as the
a. Federal Deposit Insurance Corporation b. District Board of Governors c. Federal Open Market Committee d. Reserve Requirement Regulation Conference e. Federal Funds Mandate
Investment is a very stable component of GDP.
Answer the following statement true (T) or false (F)