In a negative income tax program,
a. the government guarantees a minimum level of family income
b. a family must pay income taxes on its welfare check
c. a family receives a fixed amount of money from the government and its members can keep all income earned through work
d. the government reduces the welfare payment by any income earned through work
e. a family's income is lower if its members work
A
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A firm's marginal revenue product curve is downward sloping, which means the derived demand curve for an input is downward sloping
a. True b. False
In the classical model, beginning from an equilibrium in which the government is running a budget surplus,
a. this will lower the wage rate b. the demand for loanable funds will be horizontal c. an increase in government spending will crowd out more than an equal amount of private spending d. an increase in government spending will crowd out an equal amount of private spending e. an increase in government spending will crowd out less than an equal amount of private spending
A required reserve ratio of 12 percent gives rise to a simple deposit multiplier of
A) 12. B) 83.33. C) 6.67. D) 8.33.
With a nominal interest rate of 5%, the present discounted value of $100 to be received in two year is
A) $90.00. B) $90.70. C) $95.23. D) $110.00.