If leisure is drawn on the horizontal axis and labor is drawn on the vertical axis, then a person who attaches more importance to leisure than to labor will have indifference curves that:
A. tend to be steeper.
B. tend to be flatter.
C. will be positively-sloped.
D. will be L-shaped.
B. tend to be flatter.
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If you pay $2,000 in taxes on an income of $20,000, and a tax of $2,700 on an income of $30,000, then over this range of income the tax is
A) regressive. B) proportional. C) progressive. D) There is insufficient information to answer the question.
After the repeal of Regulation Q, a problem for savings-and-loan associations (S&Ls) was that most of their assets were at __________ interest rates while their deposits were at __________ interest rates
A) low; low B) low; high C) high; low D) high; high
During inflation, the optimal discretionary fiscal policy would be _____
a. to decrease taxes b. to increase government spending c. to decrease the reserve ratio d. to increase taxes e. to decrease the market interest rate
Suppose a U.S. firm buys a one-year U.K. bond for 6,000 British pounds when 1 British pound is worth $1.50 on the foreign exchange market. What is the firm's approximate rate of return on the bond if the interest rate on the bond is 15 percent and the exchange rate is 1 British pound is worth $1.93 at maturity?
a. 11 percent b. 15 percent c. 25 percent d. 33 percent e. 48 percent