A government policy that makes investments prior to retirement tax exempt until retirement increases the amount saved at any given interest rate
What will be an ideal response?
True. Allowing investors to earn interest on the amount owed in taxes will shift out the supply curve of funds.
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Assume the marginal propensity to consume is .8 . To offset a fall in income of 1,000, the government should
a. increase taxes by $200. b. raise taxes by $250. c. increase government spending and taxes by 1,000. d. cut taxes by $200. e. both c and d.
Libertarians believe that
a. it is more important to evaluate the process by which economic outcomes are produced than the outcomes themselves. b. government should attempt to redistribute income from the rich to the poor when the gap between rich and poor is more than 20%. c. equality of income is more important than equality of opportunity. d. it is more important to evaluate economic outcomes first and then the process that produced them.
According to the misperceptions theory, an anticipated decline in the money supply leads to a shift of the AD curve ________ and a shift of the SRAS curve ________.
A. up and to the right; upward B. down and to the left; downward C. up and to the right; downward D. down and to the left; upward
A U.S. individual buys shares in a Swiss company. This transaction will be entered as
A. a credit in the U.S. capital account. B. a debit in the U.S. current account. C. a debit in the U.S. capital account. D. a credit in the U.S. current account.