The U.S. experience with tax cuts and tax increases since 1975 suggests that
A. tax cuts always stimulate consumption spending.
B. tax changes have a stable and predictable effect on consumption spending.
C. temporary tax changes are less effective than permanent changes.
D. tax changes have no effect on consumption spending.
Answer: C
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The richest 10 percent of U.S. houses hold more than two-thirds of all wealth. The problem with this statement is that
A) it does not consider an individual's current income. B) it does not consider private and public pension plans. C) it is based entirely on nonhuman wealth. D) it is based entirely on human wealth.
An increase in the price of the output produced by labor will:
A. increase the supply of labor. B. decrease the demand for labor. C. decrease the supply of labor. D. increase the demand for labor.
The reason people in Professor Rawls' thought experiment would choose an equal distribution of income is that:
A. people are risk-neutral. B. it is the easiest distribution to implement. C. they are concerned about the welfare of others. D. they fear ending up in a disadvantaged position themselves.
Who makes up the voting members of the Federal Reserve's Open Market Committee?
What will be an ideal response?