Answer: D) a decrease in income tax revenues
When real Gross Domestic Product (GDP) falls, which of the following will automatically occur?
A) an increase in income tax revenues
B) a decrease in all tax rates
C) a decrease in unemployment compensation expenditures
D) a decrease in income tax revenues
Economics
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If the real interest rate falls, other things being the same, the quantity of loanable funds demanded ________ and the quantity of loanable funds supplied ________
A) does not change; decreases B) increases; increases C) increases; decreases D) decreases; does not change E) decreases; decreases
Economics
At all the points above the midpoint on a linear demand curve, the value of price elasticity of demand is:
A) equal to one. B) zero. C) greater than one. D) less than one.
Economics
One way to estimate GDP is to:
A. add together the market value of only final goods sold in the economy and not services. B. measure the total expenditure of an economy. C. add together the market value of only final services sold in the economy. D. add up all the money people spend buying final and intermediate goods and services.
Economics
Assume that the MPC is 0.85 and investment spending rises by $100 million. How much consumption spending will this generate in the second round of spending?
a. $15 million b. $85 million c. $100 million d. $118 million e. $185 million
Economics