Many economists argue that an incentive to save is
A) strengthening the property rights that savers have to the physical capital they purchase.
B) greater government regulation of the banking and securities industries.
C) a tax on consumption rather than on income.
D) a tax on income rather than a tax on consumption.
E) high income tax rates.
C
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Two studies published in the New England Journal of Medicine link the risk of breast cancer to alcohol consumption. Young women who have nine drinks per week were reportedly 150 percent more likely to develop breast cancer. Considering the market for alcohol, an economist would predict a movement
a. up the demand curve as quantity demanded falls. b. up the supply curve as the demand curve shifts. c. down the supply curve as the demand curve shifts. d. down the demand curve as quantity falls.
What percentage of American families pay more payroll tax than they pay in income tax?
A. 40. B. 60. C. 75. D. 80.
In the circular flow model, which of the following is considered a leakage?
A. Investment spending B. Business spending C. Household saving D. Total exports
Assume the interest parity condition holds and that individuals expect the dollar to appreciate by 5% during the coming year. Given this information, we know that
A) the interest rate differential between the two countries is less than 5%. B) i < i. C) i = i. D) individuals will only hold foreign bonds. E) none of the above