If wages rise by 12 percent at the same time prices rise by 3 percent, then the increase in real wages is equal to
a. 12 percent.
b. 9 percent.
c. 6 percent.
d. 3 percent.
b
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The relationship between consumer spending and income is known as the
A) rate of individual wealth. B) consumption function. C) rate of income. D) inflation rate.
An MNE would most likely benefit from converting local currency into its home-country currency when exchange rates are most favorable so it can maximize its return.
a. true b. false
According to supply-side economists, government regulation of factor markets, such as OSHA,
A. Decreases production costs and causes AS to decrease. B. Increases production costs and causes AS to decrease. C. Increases production costs and causes AS to increase. D. Decreases production costs and causes AS to increase.
In a progressive tax system
A. the marginal tax rate and the average tax rate decrease as income levels increase and the marginal tax rate is less than the average tax rate. B. the marginal tax rate and the average tax rate increase as income levels increase and the marginal tax rate exceeds the average tax rate. C. the marginal tax rate increase as income increases but the average tax rate does not change as income increases. D. the marginal tax rate and the average tax rate are the same for every income level and the same as income increases.