With a progressive tax system, as the level of income increases in an economy, the average tax rate will:
A. remain the same.
B. increase.
C. decrease.
D. decrease, increase, or remain the same.
Answer: B
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How has growth in M2 minus the growth in real GDP compared to the inflation rate in the United States?
What will be an ideal response?
Suppose you are looking to add more capacity to your current manufacturing plant. The new project will cost $6 million up front and is projected to increase revenue $1.5 million a year for each of the next 5 years. If the interest rate is 8%, what is this project's NPV and is it a profitable investment?
A. $10,935; yes it is profitable B. -$10,935; no it is not profitable C. $944,444; yes it is profitable D. -$944,444; no it is not profitable
When constructing an overall measure that shows inflation in the prices of many different items, economists consider: a. the average of the price changes of all goods
b. the total cost of purchasing a basket of goods and services. c. the changes in the prices of only luxury goods. d. the changes in the prices of only nondurable goods.
With a given level of money income, when the price of a product that a consumer buys declines, the purchasing power of your money income
A. is unchanged. B. decreases. C. increases. D. can increase or decreases depending on the goods being consumed.