Refer to the information provided in Table 19.4 below to answer the question(s) that follow.Table 19.4Total IncomeTotal Taxes$10,000 $1,000 20,000 2,400 30,000 4,500 40,000 8,000Related to the Economics in Practice on page 393: Refer to Table 19.4. If income increases from $30,000 to $40,000, the marginal tax rate is
A. 5%.
B. 20%.
C. 35%.
D. indeterminate from this information.
Answer: C
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Who are minimum wages designed to help? Do they succeed? What is their effect on society?
What will be an ideal response?
The planned investment function will shift downward if
A) real disposable income increases. B) the interest rate falls. C) business expectations become more pessimistic. D) the existing stock of capital decreases.
Which of the following is not a characteristic of an economy in recession?
A. Reduction in consumer spending B. Reduction in business spending C. Reduction in unemployment D. Reduction in inflation
If you were a Keynesian economist, what policies would you likely suggest to respond to a recession?
a. moderate tax cuts and increases in government spending b. cuts in government spending and moderate tax increases c. tax refunds and deep cuts to social programs d. government investments in defense and anti-inflation measures