The marginal tax rate and the average tax rate are the same under a
A. regressive income tax system.
B. progressive income tax system.
C. proportional income tax system.
D. none of these.
Answer: C
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Compared to a firm that has many small plants, a firm with a few large plants is likely to have all of the following except which one?
A) greater managerial diseconomies B) less managerial diseconomies C) fewer inputs D) greater availability of specialized capital
The type of banking system under which banks are required to hold only a portion of their assets in reserve against the checking deposits of their customers is called
a. a gold-backed banking system. b. a full reserve banking system. c. a fiat banking system. d. a fractional reserve banking system.
If the Federal Reserve lowered the reserve requirements imposed on the banking industry, which of the following will most likely happen in the short run?
a. an increase in the demand for loanable funds, which will exert upward pressure on the interest rate b. an increase in the supply of loanable funds, which will exert downward pressure on the interest rate c. an increase in the unemployment rate d. a decrease in the rate of inflation
The interest rate falls if
a. the price level falls or the money supply falls. b. the price level falls or the money supply rises. c. the price level rises or the money supply falls. d. the price level rises or the money supply rises.