Disposable income is defined to be:
A. total income minustaxes.
B. total income plus taxes.
C. total income minus depreciation.
D. All of these are true.
A. total income minustaxes.
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Describe the principal costs of unemployment. Are there any benefits to unemployment?
What will be an ideal response?
Within the Keynesian aggregate expenditures model, which of the following autonomous changes would decrease the equilibrium output?
a. A decrease in investment spending. b. An increase in net exports. c. An increase in government spending. d. An increase in consumption expenditures
A major purpose of usury laws is to make more funds available to low-income borrowers. Economic analysis suggests that usury laws:
A. are effective in achieving this goal. B. allocate available funds to high-income borrowers. C. have no impact on the allocation of funds between high-income and low-income people. D. help low-income people only when the legal interest rate is above the market rate.
When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms, ceteris paribus, to
A. increase investment because the higher corporate profits tax will increase the return on any investment. B. decrease investment because they would expect lower benefits from investment. C. not change their investment plans because higher corporate profit taxes will not change the demand for their product. D. plan to increase investment in the future to compensate for the higher tax rate.