One policy that would increase the saving rate would be
A) raising taxes on the returns to saving.
B) raising taxes on the returns to investment.
C) taxing consumption.
D) raising taxes on saving.
C
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The shift of the short-run Phillips curve in the figure above is the result of
A) an increase in the natural unemployment rate. B) a decrease in the expected inflation rate. C) a decrease in the actual inflation rate. D) an increase in the expected inflation rate. E) a decrease in the natural unemployment rate.
At the end points on a budget line, the consumer is not spending all of his budget, since one of the goods is not being purchased.
Answer the following statement true (T) or false (F)
According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
A. $0.13. B. $1.25. C. $8. D. $200.
Compared to a proprietorship, an advantage of a partnership is
A) that profits are not taxed twice. B) double taxation. C) the ability to take advantage of greater specialization. D) the limited liability of the partners.