The more progressive the tax system, the:
A. Less is the built-in stability for the economy
B. Greater is the built-in stability for the economy
C. Less is the effect of crowding-out on the economy
D. Greater is the severity of business fluctuations on the economy
B. Greater is the built-in stability for the economy
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The current account surplus is
A) an increasing function of disposable income and an increasing function of the real exchange rate. B) a decreasing function of disposable income and a decreasing function of the real exchange rate. C) a decreasing function of disposable income and an increasing function of the real exchange rate. D) only a decreasing function of disposable income. E) only an increasing function of the real exchange rate.
Consumers should allocate their income so that the marginal utility associated with the:
a. first dollar spent is equal for all goods. b. last dollar spent is equal for all goods. c. last dollar spent is lower for high-priced items than for low-priced items. d. first dollar spent is greater for high-priced items than for low-priced items. e. first dollar spent is less for high-priced items than for low-priced items.
The amount by which consumption increases when after-tax income increases by $1 is called the:
A. marginal propensity to consume. B. marginal consumption revenue. C. variable propensity to consume. D. consumption multiplier effect.
If a production possibilities curve for books and magazines is straight, then
A) the opportunity cost of increasing book production remains constant regardless of the total quantity produced. B) the opportunity cost of increasing book production continues to decline as total production increases. C) the opportunity cost of increasing book production continues to increase as total production increases. D) the opportunity cost of increasing book production is independent of the shape of the curve.