If a lump-sum tax of $40 billion is imposed and the MPC is .6, the saving schedule will shift:
A. downward by $24 billion.
B. upward by $24 billion.
C. downward by $16 billion.
D. upward by $16 billion.
C. downward by $16 billion.
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The rate of return of a stock held for one year equals
A) the change in the price of the stock. B) the dividend yield plus the rate of capital gain. C) the rate of capital gain minus the dividend yield. D) the dividend yield minus the rate of capital gain.
The United States _____ the highest productivity per worker in the world but also has a _________ work week than other industrialized nations.
A. has; shorter B. has; longer C. does not have; shorter D. does not have; longer
In defining money as M1, economists exclude time deposits because
A. they do not directly serve as a medium of exchange. B. they are not recognized as legal tender. C. they have no intrinsic value. D. they earn an interest for their holders.
Which of the following is a normative economic statement?
A) Rising global demand for diesel and heating oil has led to increases in the price of crude oil. B) With falling home prices and rising mortgage interest rates, the amount of foreclosures has increased. C) The federal government is considering raising the gasoline tax to promote the use of public transportation. D) Fashion designers should be allowed to copyright designs to promote innovation.