Which of the following is likely to happen if the government raises tax rates?
A) Unemployment will fall. B) Investment will increase.
C) Price level will rise. D) Consumption will decrease.
D
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In the United States, most workers
A. work for government of some sort. B. produce raw materials for manufacturing. C. work in agriculture and farming. D. produce services rather than goods.
In an economy, there is $200 million in currency held outside banks, $100 million in traveler's checks, $250 million in currency held inside the banks, $300 million in checking deposits, and $600 million in savings deposits
The value of M1 is ________. A) $750 million B) $1,200 million C) $1,150 million D) $600 million
The economist in the 1930s who is credited with key insights into causes of economic downturns was:
A. Adam Smith B. David Ricardo C. Ben Bernanke D. John Maynard Keynes
Which of the following statements is correct?
a. Marginal social cost is the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity. b. Marginal private cost is the share of marginal cost caused by an activity that is borne by persons other than those who carry out the activity. c. Marginal social cost is the sum of marginal private cost and incidental cost. d. Marginal private cost and incidental cost are one and the same.