Incentives to work and save are reduced when
a. income taxes are higher.
b. consumption taxes replace income taxes.
c. corrective taxes are implemented.
d. All of the above are correct.
a
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Which of the following U.S. government securities are nonmarketable?
A) Treasury bills B) Treasury notes C) Treasury bonds D) Savings bonds
The input-substitution effect of an increase in the wage comes about because higher wages:
A. increase production costs, and final good prices will rise, reducing the quantity demanded of the product. B. increase production costs, and final good prices will rise, increasing the quantity demanded of the product. C. make labor less expensive as an input, leading firms to switch to labor as an input. D. make labor more expensive as an input, leading firms to switch to other inputs.
Higher personal income taxes
A) increase aggregate demand. B) increase disposable income. C) decrease aggregate demand. D) both B and C
If the exchange rate falls, the quantity of dollars supplied
A) increases, and there is movement up along the supply curve of dollars. B) increases, and there is movement down along the supply curve of dollars. C) decreases, and there is movement up along the supply curve of dollars. D) does not change. E) decreases, and there is movement down along the supply curve of dollars.