Which of the following can an economist predict with the most accuracy?
a. how Gwen will respond to an increase in the price of down jackets
b. how Larry, Terry, and Mateo will respond to a decrease in the price of orange juice
c. how a group of ten will respond to an increase in the price of motorcycles
d. how a group of 100 will respond to a decrease in the price of cell phones
a. how Gwen will respond to an increase in the price of down jackets
b. how Larry, Terry, and Mateo will respond to a decrease in the price of orange juice
c. how a group of ten will respond to an increase in the price of motorcycles
d. how a group of 100 will respond to a decrease in the price of cell phones
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An increase in the average tax rate that ________ the budget deficit in an example of ________
A) raises, automatic stabilization B) raises, discretionary fiscal policy C) lowers, automatic stabilization D) lowers, discretionary fiscal policy
Taxes can have different effects on different income groups. Which type of tax takes a larger percentage of income from high-income groups than from low-income groups?
(a) Progressive (b) Regressive (c) Proportional (d) Flat (e) Protective
Most of the spending by the federal government is for transfer payments and interest
Indicate whether the statement is true or false
Because of their effect on interest rates:
a. capital flows weaken monetary policy but strenghen fiscal policy b. capital flows strengthen monetary policy but weaken fiscal policy c. the initial effects of a fiscal expansion on aggregate demand are strengthened d. the initial effects of a monetary contraction are weakened