If the marginal propensity to save in a country is 0.4, then the value of the tax multiplier is:
a. ?1
b. ?0.5.
c. ?2.
d. ?1.5.
d
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Empirical studies have shown that in most situations people are:
A) risk-averse. B) risk-neutral. C) risk-loving. D) either risk-neutral or risk-loving but not risk-averse.
The Taxpayer Relief Act of 1997 created the Hope Higher Education Scholarship program which provides a maximum of $1,500 in tax credits for the first two years of college for families with adjusted-gross incomes of less than $100,000 . What effect do you think this act might have on the aggregate supply curve?
A firm is generally more interested in marginal profits than in total profits
a. True b. False Indicate whether the statement is true or false
A binding price floor is: a. set with the aim of increasing the consumer surplus. b. set at the equilibrium price level
c. set below the equilibrium price level. d. set above the equilibrium price level.