Joan Robinson, author of The Second Crisis of Economic Theory, is quoted as saying, "Keynes did not want anyone to dig holes and fill them." She is pointing out that
A. As far as stabilization objectives are concerned, the level of spending is the only thing that counts.
B. The government should not be interfering in the economy because the jobs created are usually unproductive.
C. The content of fiscal policy is as important as its aggregate impact on the economy.
D. Keynesian economic policies do not work.
Answer: C
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Assume the marginal tax rate is 10 percent for the first $30,000 of income, 15 percent for income between $30,000 and $70,000, and 20 percent for any income over $70,000. If Emily has taxable income equal to $80,000 for the year, what is her tax bill?
A. $16,000. B. $8,000. C. $12,000. D. $11,000.
Assuming the interest rate is 5 percent, which of the following has the greatest present value?
a. $240 paid in three years b. $225 paid in two years c. $210 paid in one year d. $200 today
The marginal income tax rate is equal to
A. the change in the tax payment divided by the change in income. B. the percent of total income that goes to taxes. C. the average tax payment divided by the total tax payment. D. the total tax payment divided by total income.
The ultimate threat of a union is
A) the lockout. B) the President's power granted by the Taft-Hartley Act. C) the unity of spirit of the union membership. D) the strike.