If the government increases the income tax rate, consumers have:
A. less to spend and will reduce their consumption.
B. more to spend and will reduce their consumption.
C. less to spend and will increase their consumption.
D. more to spend and will increase their consumption.
A. less to spend and will reduce their consumption.
You might also like to view...
Refer to Table 2.4. The principle of diminishing returns sets in with the addition of the ________ tank of fertilizer
A) second B) third C) fourth D) fifth
Government's role of providing national defense is considered:
A) enforcing a legal system. B) providing certain goods and services. C) redistributing income. D) expanding economic growth.
One of the reasons government debt is different from individual debt is:
A. the government debt is unrelated to income. B. all government debt is owed to other government agencies. C. government never really needs to pay back its debt. D. government does not pay interest on its debt.
Firm A is a monopoly. The demand for its output is p = 90 - Q. Production is such that Q = L. Firm A hires labor in a competitive market where the wage is $10. Firm A will hire
A) 10 units of labor. B) 20 units of labor. C) 30 units of labor. D) 40 units of labor.