Economic Fact
What will be an ideal response?
People respond to economic incentives in making choices. These economic incentives are often in the form of 'prices'
You might also like to view...
In one of the earliest studies on the link between interest rates and money demand using United States data, James Tobin concluded that the demand for money is
A) sensitive to interest rates. B) not sensitive to interest rates. C) not sensitive to changes in income. D) not sensitive to changes in bond values.
The two taxes that together provide the U.S. federal government with almost 80 percent of its revenue are
a. individual income taxes and property taxes. b. individual income taxes and corporate income taxes. c. individual income taxes and payroll taxes. d. sales taxes and payroll taxes.
Which of the following people would be included in the calculation of the civilian labor force?
a. Adriana, a 17-year-old high school graduate who is looking for her first job b. Khadija, a retiree who occasionally does volunteer work at the local library c. Simen, an accountant who is currently serving a prison sentence for embezzlement d. Lorn, a Marine Corps sergeant who works full time at 29 Palms, California
Suppose a country has a real interest rate of 4 percent and an inflation rate of 3 percent. If the income tax rate is 20 percent, then the after-tax real interest rate is
A) 2.6 percent. B) 7.0 percent. C) 5.6 percent. D) 4.0 percent. E) 1.4 percent.