Refer to Figure 10-4. Which of the following is consistent with the graph depicted?
A) an increase in the proportion of income after net taxes used for consumption
B) an increase in transfer payments to households
C) an increase in household income
D) an increase in tax revenues collected by the government
A
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In a saving—investment diagram for a small open economy
A) the saving curve is vertical at some fixed level of output. B) the saving curve is horizontal at some fixed interest rate. C) the real interest rate is fixed at the world real interest rate. D) equilibrium requires that Sd = Id.
Under which one of the following situations would you be better off?
A) You have $10,000 in your savings account paying 5 percent per year and unanticipated inflation is 8 percent per year. B) You have paid $500 for a $1,000 U.S. savings bond that matures in 10 years and unanticipated inflation is 10 percent per year. C) You lend a friend $1,000 at 6 percent to be repaid in one year and unanticipated inflation is 7 percent during the year. D) You borrowed $2,500 at 7 percent to pay for this year's college expenses and unanticipated inflation is 12 percent during the year.
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1 . If market demand is given by QD = 1050 ? 50P, what is the equilibrium price?
a. 5 b. 10 c. 11 d. 50
Damage from which of the following is NOT covered in a basic homeowner's policy?
A) Fire and lightning B) Explosion C) Windstorm and hail D) Flood