If personal income taxes are increased, disposable income and consumption
a. increase.
b. stay the same.
c. decrease.
d. change in an unpredictable direction.
c
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In the Wealth of Nations, Adam Smith wrote about how countries could increase their consumption of goods and services through specialization and trade with other countries.
Answer the following statement true (T) or false (F)
Which group is responsible for the policy decision of changing the money supply?
A. Federal Open Market Committee B. Federal Advisory Council C. Office of Management and Budget D. Thrift Advisory Council
Referring to a production possibilities curve and the goods being compared, depict the economic event. The economy moves from full employment to a serious recession (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve B. A movement from a point on the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward) E. A movement along the curve
A bank's return on equity (ROE) is calculated by:
A. dividing the banks liabilities by the bank's capital. B. dividing the bank's net profit after taxes by the sum of the bank's assets and its liabilities. C. taking the bank's assets plus the net profit after taxes and dividing this sum by the bank's capital. D. dividing the bank's net profit after taxes by the bank's capital.