Which of the following best defines national income?
a) income received by households less personal taxes
b) the before-tax income received by households
c) incomes earned by U.S. resource suppliers plus taxes on production and imports
d) the market value of the annual output net of consumption of fixed capital
b) the before-tax income received by households
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If the price of TVs produced by XYZ-TV Company falls from $1,000 to $750 per TV set, then the:
A. supply of labor to the XYZ-TV Company increases. B. demand for labor by the XYZ-TV Company increases. C. supply of labor to the XYZ-TV Company decreases. D. demand for labor by the XYZ-TV Company decreases.
According to the classical model shown above, an autonomous decline in investment shifts the investment schedule to the left. Furthermore, the equilibrium interest rate declines. Distance A describes an interest rate induced
a. decline in saving, which is an equal increase in consumption. b. increase in investment. c. decrease in investment. d. decline in saving, which exceeds the increase in consumption.
Which of the following events would reduce the size of the "real-world" money multiplier?
a. Banks hold more excess reserves. b. Households hold less currency. c. The Fed increases the discount rate. d. The Fed reduces the required reserve ratio.
Which of the following does not cause exchange rate fluctuations?
a. Changes in relative international incomes. b. Changes in relative international expectations. c. Central bank interventions in the foreign exchange market. d. Changes in relative international tax rates. e. All of the above variables cause exchange rate fluctuations.