Who actually pays an excise tax
A. is determined by income bracket.
B. is determined by who the law assigns the tax.
C. is wage and salary earners but not people who have only investment income.
D. is determined by the change in prices and outputs caused by the tax.
Answer: D
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People who choose not to participate in fair gambles are called
a. risk takers. b. risk averse. c. risk neutral. d. broke.
The investment demand curve as a function of various possible interest rates for the entire economy is assumed to be:
a. positively sloped. b. negatively sloped. c. rising, then falling. d. falling, then rising.
A dollar figure from 1908 is converted into 2008 dollars by dividing the 2008 price level by the 1908 price level, then multiplying by the 1908 dollar figure
a. True b. False Indicate whether the statement is true or false
Assume that the economy is currently in short-run equilibrium, then personal income taxes decline. Describe the correct sequence of events that happen as the economy adjusts to a new short-run equilibrium (be sure to state what the impact would be on the price level and Real GDP)