Which of the following would increase disposable personal income?
A) a decrease in transfer payments received
B) a decrease in taxes paid
C) a decrease in personal income
D) All of the above would increase disposable income.
Answer: B
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If the tax function is T = t0 + t1Y where t1 equals 1/3, and if the marginal propensity to consume out of disposable income is 3/4, then the change in GDP per unit change in t0 (?Y/?t0) will be
a. ? 1. b. + 1. c. ? 1.5. d. ? 2. e. + 1.5.
Suppose we shopped for a basket of goods in Year 1 and it cost $350 . Suppose the same basket of goods adds up to $385 in Year 2 . If we use Year 1 as a base year, what would be the Year 2 CPI?
a. 35. b. 90. c. 100. d. 110. e. 135.
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is an increase of the real money supply and an increase in the government's budget deficit?
a. The real risk-free interest rate falls and the quantity per time period rises. b. The real risk-free interest rate is uncertain and the quantity per time period rises. c. The real risk-free interest rate is rises and the quantity per time period is uncertain. d. The real risk-free interest rate does not change and the quantity per time period falls. e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.
Which of the following statements is false?
A) The Wilshire 5000 is a stock index that consists of the stocks of about 6,500 firms. B) Instead of buying a mutual fund that consists of various stocks picked by a fund manager you can buy a mutual fund that consists of the stocks that make up a particular stock index. C) The term Sypders stands for "Standard & Poors Direct Receipts." D) When an investor buys Spyders they are said to "buy the market."