If real output is $50 billion, the price level is 10, and velocity is 5, what is the stock of money?
A. $1 billion
B. $25 billion
C. $100 billion
D. $2,500 billion
Answer: C
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Present value analysis suggests that high-income earners
A. make a competitive real rate of return through Social Security. B. can make an average real rate of return through Social Security only if they live to age 100. C. cannot make an average real rate of return through Social Security even if they live past 100. D. can make an average real rate of return through Social Security only if they live to age 65.
If government expenditure on goods and services increase by $10 billion, then aggregate demand
A) increases by $10 billion. B) increases by $10 billion multiplied by the government expenditure multiplier. C) decreases by $10 billion multiplied by the government expenditure multiplier. D) decreases by $10 billion. E) increases by $10 billion multiplied by the tax multiplier.
If you pay a constant percentage of your taxable income in taxes, the tax is
A) regressive. B) random. C) proportional. D) progressive.
The payroll tax system is a proportional tax for all income earners.
Answer the following statement true (T) or false (F)