Under a progressive tax, the fraction of income paid in taxes
a. rises as income rises.
b. is unchanged as income changes.
c. falls as income rises.
d. is proportional to the change in income.
a
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A mathematical formula for the deficit would be
a. C + I + G ? Transfers + Taxes b. C + I + G + Transfers ? Taxes c. I + G + Transfers ? Taxes d. G + Transfers ? Taxes
In the long run, the quantity supplied of most goods
a. will increase in almost all cases, regardless of what happens to price. b. cannot respond at all to a change in price. c. can respond to a change in price, but the change is almost always inconsequential. d. can respond substantially to a change in price.
From 2000 to 2012 the U.S. had a trade
a. surplus and a large net capital inflow. b. surplus and a large net capital outflow. c. deficit and a large net capital inflow. d. deficit and a large net capital outflow.
Using the multiplier effect, if the government increases purchases on transportation equipment by $5 billion, which of the following is the most likely change in total purchases?
a. an increase of $5 billion b. an increase of $15 billion c. a decrease of $5 billion d. a decrease of $15 billion