President Clinton, at the beginning of his administration, increased personal income taxes on individuals with relatively high incomes. How will this change the consumption schedule?
a. It will shift and become steeper.
b. It will shift and become flatter.
c. It will shift in a parallel manner.
d. It will remain fixed as the economy moves along the schedule.
b
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Which of the following statements has usually held TRUE about the relationship between the trade deficits and government budget deficits?
A) There is a negative relationship between trade deficits and budget deficits. B) There is a positive relationship between trade deficits and budget deficits. C) There is no relationship between trade deficits and budget deficits. D) A relationship exists only when there is a balanced budget.
If a country is growing at an annual growth rate of 5%, what will be its GDP after 5 years?
A) 5 times the current GDP B) 1.28 times the current GDP C) 3.21 times the current GDP D) 1.8 times the current GDP
Average product falls any time
a. marginal product is falling. b. marginal product is rising. c. marginal product is below it. d. total product is rising.
An increase in interest rates will cause investment to
A) increase. B) decrease. C) not change. D) move erratically, depending on the interest rate effect on saving.