Diego's annual income increased from $20,000 to $25,000 . If Diego faces a 40 percent effective marginal tax rate, the $5,000 increase in income will expand his disposable income by
a. $2,000.
b. $3,000.
c. $3,600.
d. $5,000.
B
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If the marginal propensity to consume was 0.9, it would mean that:
A. consumers spend $1 out of every $10 of additional disposable income. B. consumers save $9 out of every $10 of additional disposable income. C. consumers spend $9 out of every $10 of additional disposable income. D. people should save more.
There would be a unique product for which there are few close substitutes under which market model?
A. Oligopoly B. Pure competition C. Monopolistic competition D. Pure monopoly
Briefly describe economic growth in Latin America from 1900 to the 1980s
What will be an ideal response?
The interest rate banks pay to borrow money from the Fed is the
A. federal funds rate. B. prime lending rate. C. discount rate. D. reserve rate.