Refer to the data. If a 10 percent proportional tax on income is imposed, the consumption schedule will now be:
Answer the question on the basis of the following before-tax consumption
schedule for an economy:
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According to classical theory, desired saving always equals investment due to changes in
A. the interest rate. B. prices. C. wages. D. taxes.
___ is the process of putting together information into a symbolic form to send a message. You want it to be received in the way you intend it to be
Fill in the blank(s) with the appropriate word(s).
The potential positive feedback that government spending may have on investment is known as the _____. The potential negative effect that government spending may have on investment is known as the _____ effect
Fill in the blank(s) with correct word
Consider the following equation for household consumption expenditure:
Consmptn= 
0+ 1Inc + 2Consmptn-1+ u
where ‘Consmptn' measures the monthly consumption expenditure of a household, ‘Inc' measures household income and ‘Consmptn-1' is the consumption expenditure in the previous month. Consmptn-1 is a _____ variable.
A. exogenous
B. binary variable
C. lagged dependent
D. proxy variable