Other things equal, a decrease in the personal income tax rate will ________ disposable income, which leads to ________ in output and employment
A) increase; an increase
B) increase; a decrease
C) decrease; an increase
D) decrease; a decrease
A
You might also like to view...
At the equilibrium level of income, the value of consumption is equal to
A) (consumption - savings). B) (income - investment). C) (savings + investment). D) (income + investment).
The trend in recent years is that more and more governments
A) have been granting greater independence to their central banks. B) have been reducing the independence of their central banks to make them more accountable for poor economic performance. C) have mandated that their central banks focus on controlling inflation. D) have required their central banks to cooperate more with their Ministers of Finance.
The producer surplus to a monopolist must be
A) less than zero or the firm is in violation of anti-trust statutes. B) at least as great as the producer surplus in a competitive market. C) positive, otherwise why would the monopoly produce? D) the same as for a competitive market.
Critics argue that firms use advertising to develop consumer preferences
a. True b. False Indicate whether the statement is true or false