Which of the following statements about crowding out is true?
a. It can completely offset the multiplier.
b. It is caused by a budget deficit.
c. It is not caused by a budget surplus.
d. All of these are true.
d
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If the consumption function is C = 90 + 0.75y, then the level of autonomous consumption is
A) 0.25. B) 0.75. C) 67.5. D) 90.
A worker within the middle-income class is preparing to retire. In the year before he retired, his gross monthly earnings are $2,500. His Social Security benefits will be $1,500 per month. Before he retired, his income was subject to a tax of 30 percent. Find his before-tax and after- tax replacement rates.
What will be an ideal response?
Which of the following has a production process that would be considered capital intensive?
A. A chorale B. Police detective work C. Auto manufacturing D. Serving food at a restaurant.
Which of the following is a positive statement?
a. I think we should pass a constitutional amendment to reduce the deficit. b. President Clinton's way of dealing with the economy is better than President Bush's. c. I hope interest rates come down soon. d. If taxes are raised, unemployment will drop.