Reductions in the personal income tax, often advocated by supply-siders to increase labor supply and effort, can be expected to also
a. decrease consumption spending.
b. increase consumption spending.
c. decrease investment spending.
d. increase export sales.
b
You might also like to view...
Use the following table to answer the next question. The money supply and investment are in billions.Money Supply (billions of dollars)Interest RateInvestment (billions of dollars)$507%$100606110705120804130903140 Assume that the MPC is 0.8 and the reserve requirement is 0.1. If the Federal Reserve needs to increase aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 7%, then the Federal Reserve should ________ bonds on the open market equal to ________.
A. sell, $2 billion B. sell, $4 billion C. buy, $4 billion D. buy, $2 billion
The demand for a product at a given time is defined as the
a. desire for it. b. sum spent on it. c. measure of total utility for it. d. amount that would be bought at various prices.
The ability-to-pay philosophy of taxation argues for a progressive form of taxation
a. True b. False Indicate whether the statement is true or false
How did the farm population in the United States change between 1950 and today?
a. It dropped from 10 million to fewer than 3 million people. b. It dropped from 20 million to fewer than 5 million people. c. It dropped from 30 million to just over 6 million people. d. It increased from 10 million to almost 13 million people.