If a person predicts that a cut in income tax rates will decrease income tax revenues, he or she implicitly assumes that the percentage __________ in the tax base will be __________ the percentage cut in the tax rate
A) rise; less than
B) rise; greater than
C) rise; equal to
D) fall; equal to
E) none of the above
A
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Which of the following is not a consequence of the Fed changing the reserve requirement?
A) Changes in the ratio are easily incorporated into banks' routine management. B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities. C) Decreasing the ratio will increase excess reserves. D) Increasing the ratio will decrease the amount of reserves banks have to loan.
How did the global supply of savings impact the formation of the housing bubble?
What will be an ideal response?
Suppose that you can either buy a radio from a firm for $50 or find and purchase the components yourself and then either assemble them yourself or hire someone to do so. You should
a. buy the radio because it's possible to do so b. assemble the radio yourself because it's possible to do so c. assemble the radio yourself only if you know how to do so d. assemble the radio yourself only if the total price of all the components is less than $50 e. assemble the radio yourself only if the total price of all the components plus the value of your own time is less than $50
Which of the following is a valid difference between deflation and disinflation? a. Deflation is a fall in average price levels, but disinflation is a reduced rate of inflation
b. Disinflation is a fall in average price levels, but deflation is a reduced rate of inflation. c. Disinflation is a significant rise in average price levels, but deflation is a reduced rate of inflation. d. Disinflation is a fall in average price levels, but deflation is a significant rise in average price levels.