The revenue collected by an income tax is a function of the average tax rate
a. True b. False
a
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If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $500 billion, then
A) an increase in autonomous real consumption spending of $500 billion will generate this change. B) a decrease in autonomous real saving of $500 billion will generate this change. C) an increase in planned real investment spending of $200 billion will generate this change. D) an increase in real autonomous spending of $100 billion will generate this change.
If the exchange rate of the English pound goes from $1.50 to $2.00, the pound has
a. appreciated, and the English will find U.S. goods cheaper. b. appreciated, and the English will find U.S. goods more expensive. c. depreciated, and the English will find U.S. goods cheaper. d. depreciated, and the English will find U.S. goods more expensive.
The major factor distinguishing M1 from M2 is:
a. Legal tender status. b. Liquidity. c. Whether or not the financial asset is backed by gold, silver, or some other precious metal. d. Whether or not the financial asset can be turned into a precious metal quickly and without substantial loss of value. e. All of the above are important distinguishing factors.
Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the
a. market demand curve. b. market supply curve. c. equilibrium curve. d. surplus or shortage depending on market conditions.