A major problem with the negative income tax is that
a. low tax rates imply low break-even incomes.
b. low tax rates imply high break-even incomes.
c. high tax rates imply low minimums.
d. All of the above are correct.
b
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Recognizing the incentive power of property rights and markets, some of the most die-hard central planners are now allowing
a. more influence from custom or religion b. family relations to play significant roles c. a role for markets d. communal ownership of property e. inefficient use of resources
A government spending and taxation policy to create full employment without inflation is known as
a. closing an inflationary gap b. fiscal policy c. closing a recessionary gap d. a balanced budget e. a balanced budget multiplier
If a college textbook costs $80 (for a new book) at a college bookstore, it probably cost the bookstore
A. $60. B. $100. C. $40. D. $80.
Increased investment spending in the economy would be a possible result of
A) an increase in interest rates. B) a decrease in the money supply. C) an open market sale of bonds by the Fed. D) an open market purchase of bonds by the Fed.