If a tax is regressive, the average tax rate
a. remains the same as income rises.
b. rises as income rises.
c. falls as income rises.
d. falls as income falls.
c
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When television commentators refer to "tax and spend" policy, they are referring to
A) monetary policy. B) the Federal Reserve policy. C) automatic stabilizers. D) fiscal policy.
Which of the following is FALSE about saving?
A) Saving adds to wealth. B) Income left after paying taxes can either be consumed or saved. C) Saving equals wealth minus consumption expenditures. D) Saving is the source of funds used to finance investment.
The real balances effect predicts that higher prices:
a. make people worse off by reducing the value of their wealth, leading them to save more and spend less. b. make people worse off by reducing the value of their wealth, leading them to save less and spend more. c. make people better off by increasing the value of their wealth, leading them to save less and spend more. d. increase borrowing, leading to higher interest rates and less investment. e. make domestic goods relatively more expensive, increasing the demand for domestic goods and decreasing the demand for foreign goods.
Which nation listed below is successfully transitioning from a planned economy to a hybrid market economy?
A. People’s Republic of China B. Japan C. United Kingdom D. United States