Assume that the equilibrium price for a good is $5 . If the market price is $10, a:
a. shortage causes the price to decline toward $5.
b. surplus causes the price to rise above $10.
c. shortage causes the price to rise above $10.
d. surplus causes the price to decline toward $5.
d
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Taxes on interest earned from savings are less inefficient
A. the less savings behavior responds to increases in the tax rate. B. the more savings behavior responds to increases in the interest rate. C. the less willing individuals are to substitute consumption today for consumption in the future. D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. None of the above H. All of the above
Gross private domestic investment is a component of which approach to measuring GDP?
A) incomes approach B) expenditure approach C) linking approach D) output approach
A balanced budget would not affect income because an increase in government spending is exactly matched by an increase in taxes
a. True b. False Indicate whether the statement is true or false
Suppose that a consumer has a marginal propensity to consume of 0.8. If this consumer receives an extra €2 of disposable income, her saving would be expected to increase by
A. €0.40. B. €0.80. C. €1.20. D. €1.60.