When interest income from savings is taxed, people will save
a. more to make up for what is lost in taxes.
b. the same amount as they would have without the tax.
c. less than they would without the tax.
d. None of the above is correct since the government would not tax interest on savings.
c
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Compared to 1929, total output in the U.S. today is approximately ________ times larger.
A. 5 B. 25 C. 2 D. 15
If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed
A) no matter what. B) as long as the consumer can afford to pay for it. C) if the total benefit of the good is greater than its total cost. D) if the marginal benefit of the good is greater than its marginal cost.
If an effective minimum wage is set,
a. a labor surplus is created. b. a labor shortage results. c. wages fall below the market wage. d. the level of employment rises.
Nominal income:
A. Reflects the purchasing power of money. B. Is income adjusted for inflation. C. Is the amount of money income, measured in current dollars. D. Is the amount of money income, measured in constant dollars.