When households' marginal propensity to consume (MPC) increases, the size of the spending multiplier:
a. also increases.
b. decreases.
c. remains unchanged.
d. reacts unpredictably.
a
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The figure above represents the behavior of total revenue as price falls along a straight-line demand curve. Unit elasticity of demand occurs at
A) point g. B) point h. C) point i. D) point j.
The federal government receives most of its revenues from
A. personal income taxes. B. property taxes. C. corporate taxes. D. excise taxes.
In recessions, we expect to run federal budget ___ bc govt spending will be ____ tax revenues.
a. balances; equal to b. surpluses; greater than c. surpluses; smaller than d. deficits; greater than e. deficits; smaller than
Which statement is false?
A. The federal government collects more in Social Security taxes than in personal income tax. B. The federal government collects more in Social Security taxes than in corporate income tax. C. The federal government collects more in personal income tax than in corporate income tax. D. None of these statements are false.