When the marginal propensity to save declines, the
A) multiplier becomes larger and the IS curve becomes flatter.
B) marginal propensity to consume increases and there is no effect on the IS curve.
C) multiplier becomes larger and the IS curve becomes steeper.
D) multiplier declines and the IS curve becomes steeper.
A
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If the Gini coefficient for Cartland is 1, it means that income distribution is perfectly equal in this society
Indicate whether the statement is true or false
Life insurance companies, because of the __________-term nature of their liabilities, prefer to hold __________-term assets
A) long; long B) long; short C) short; long D) short; short
If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs
a. These purchases are called capital investment. If you raise the funds to purchase them from others you are a saver. b. These purchases are called capital investment. If you raise the funds to purchase them from others you are a borrower. c. These purchases are called consumption. If you raise the funds to purchase them from others you are a saver. d. These purchases are called consumption. If you raise the funds to purchase them from others you are a borrower.
According to the Laffer curve, tax evasion occurs in the same conditions that promote ______.
a. maximum tax revenues b. high incentives to work c. low incentives to invest d. maximum savings