Refer to Figure 15-6. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to
A) raise income taxes. B) raise interest rates.
C) lower income taxes. D) lower interest rates.
D
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Dynamic tax analysis assumes
A) all of the present tax rates will be in place for a minimum of twenty years. B) changes in the tax rates have no effect on the tax base. C) changes in the tax rates have no effect on tax revenue. D) changes in the tax rates will change the tax base.
As price elasticity of supply increases, the supply curve
a. becomes flatter. b. becomes steeper. c. becomes downward sloping. d. shifts to the right.
An aggregate demand curve indicates the quantities of real GDP demanded at different ______ levels.
a. income b. stock market c. price d. interest rate
If a rational consumer is in equilibrium, which of the following conditions will hold true?
A. MU a = MU b = MU c = . . . = MU n . B. The marginal utility of each good purchased will be zero. C. The marginal utility of the last dollar spent on each good purchased will be the same. D. The total utility obtained from each good purchased will be the same.