In an aggregate expenditures diagram, a lump-sum tax (T) will:
A. not affect the C + I g + X n line.
B. shift the C + I g + X n line upward by an amount equal to T.
C. shift the C + I g + X n line downward by an amount equal to T.
D. shift the C + I g + X n line downward by an amount equal to T × MPC.
D. shift the C + I g + X n line downward by an amount equal to T × MPC.
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Refer to Table 11-1. Based on the table above, which country has a higher standard of living and why?
A) Sweden has a higher standard of living because their GDP per capita is higher. B) Sweden has a higher standard of living because their GDP is higher. C) Ireland has a higher standard of living because their GDP per capita is higher. D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.
The above figure shows the market for steel ingots. What is the total surplus under social optimum?
A) $2500 B) $5000 C) $6500 D) Not enough information.
Other things constant, an increase in interest rates will
A) increase your incentive to borrow. B) increase your incentive to save. C) increase your incentive to buy a new car on credit. D) reduce your incentive to save.
Wealth can be thought of as:
A. The sum of all assets you have at any one point in time. B. The sum of all assets and any expected future assets. C. The sum total of all assets less any debts. D. The income that you have earned that year.