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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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.
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.