If consumers spend _____ of a change in their disposable income, then a tax increase of $100 would lower consumption by $70
a. 35 percent
b. 100 percent
c. 80 percent
d. 70 percent
e. 50 percent
d
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In Japan, interest rates are close to zero. As a result, Keynesians would argue that money demand
a. has become much more interest rate elastic. b. will shift upward. c. has become much less interest rate elastic. d. will shift downward. e. will remain unchanged.
Use the NBER data in Table 8.1 in the textbook on U.S. business cycle turning points to calculate:
a) the shortest business cycle from peak to peak; b) the shortest business cycle from trough to trough; c) the longest business cycle from peak to peak; and d) the longest business cycle from trough to trough.
Which of the following is an example of a monetary policy?
A) The federal government increases income tax rates on people earning more than $250,000. B) The duration of unemployment benefits is extended to 99 weeks. C) The Federal Reserve increases interest rates. D) Congress authorizes a cut in spending on education.
Industrial policy involves governments using taxes, subsidies, and regulations to nurture the development of specific industries
a. True b. False Indicate whether the statement is true or false