If taxes are reduced, will most people save more or less than before? Does national saving rise or fall? Explain
What will be an ideal response?
Lower taxes mean higher disposable income, which should encourage increases in both consumption and saving. Reduced government revenue, given government spending, means a decrease in government saving. Since private saving does not rise as much as the decrease in government saving, national saving falls.
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The intersection of GG and LL determines
A) the optimal level of integration desired by Norway. B) the maximum integration level desired by Norway. C) the minimum level of integration that will cause Norway to join the fixed exchange rate regime. D) the maximum level of integration that will cause Norway to join the fixed exchange rate regime. E) the maximum level of integration that can aid Norway if it joins the fixed exchange rate regime.
Economic profits are calculated by subtracting:
A. explicit costs from total revenue. B. implicit costs from total revenue. C. implicit costs from normal profits. D. explicit and implicit costs from total revenue.
Mike lives and works as a musician in the U.S. However, he sometimes plays in concerts in foreign countries. The money he earns from these concerts are treated as ________ in the U.S. current account
A) imports B) exports C) factor payments from foreigners D) transfer receipts
The price elasticity of demand for oranges ________ change if the units of the quantity was changed from pounds to kilograms and ________ change if the units of the price was changed from dollars to cents
A) would; would B) would; would not C) would not; would D) would not; would not