The President proposes a reduction of personal income marginal tax rates in the United States. When marginal tax rates are reduced, there is
A) a decrease in the magnitude of the expenditure multiplier.
B) an increase in the magnitude of the expenditure multiplier.
C) a decrease in the marginal propensity to consume.
D) no change in the slope of the AE line.
E) an increase in the marginal propensity to consume.
B
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You have an hour between your economics and math classes. What is the opportunity cost of that time if you use it to complete your math homework instead of your economics homework?
A) the economics homework you could have completed B) the cost of your calculator and math textbook C) the math homework you chose to complete D) zero, because it doesn't cost any money to do your math homework
Which of the following would mostly likely shift the production possibilities curve in an outward direction?
a. a decrease in the current rate of unemployment b. a movement along the curve sacrificing capital goods for consumption goods c. an increase in the price of goods and services d. advances in medicine that reduce the incidence of disease and lengthen productive life spans
How do you calculate a percentage change in quantity if given an elasticity of demand and a percentage change in price?
What will be an ideal response?
Most of China's recent growth has been fueled by ________, and most of India's recent growth has been fueled by ________.
A. services; manufacturing B. manufacturing; manufacturing C. manufacturing; services D. services; services