A decrease in the personal income tax rate ________ disposable income, which ________ consumption.
A. increases; increases
B. increases; decreases
C. decreases; decreases
D. decreases; increases
Answer: A
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The balance of trade records
A) trade in financial assets. B) the current account plus long-term capital. C) the value of merchandise exports minus imports. D) short-term capital plus the basic balance.
Fractional reserve banking occurs when: a. a bank has reserves that exceed its deposits
b. a bank has reserves that are equal to its deposits. c. a bank has reserves that are less than its deposits. d. some depositors lose their deposits through poor bank management. e. some lenders fail to repay their loans.
For any combination or outputs, there is an efficient allocation of income.
Answer the following statement true (T) or false (F)
Which of the following is the primary source of rapid growth in the real earnings of workers?
a. increases in the minimum wage b. government regulation of labor markets c. strong unions d. rapid growth in worker productivit