An decrease in Social Security contributions will make
A. national income larger.
B. personal income larger.
C. gross domestic product larger.
D. national income smaller.
Answer: B
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In the long run, the nominal interest rate is
A) negatively related to the inflation rate. B) positively related to the inflation rate. C) negatively related to the price level. D) positively related to the price level. E) not related to the price level or the inflation rate.
When we graph consumption as a function of ________ rather than as a function of disposable income, the slope of this consumption function is ________
A) national income; the MPS B) personal income; the MPS C) personal income; (MPC - MPS) D) national income; the MPC
Based on the HRV growth diagnostic framework and the case study in Box 4.2, what are the binding constraints faced by Brazil, El Salvador and the Dominican Republic and how can these constraints be overcome?
What will be an ideal response?
The purpose of open-market operations is to
a. finance government spending. b. influence the flow of credit and money. c. ensure the safety of deposits in the commercial banks. d. support the value of Federal Reserve notes.