If real disposable income increases, the average propensity to consume will
A) initially increase, and then decrease.
B) remain constant.
C) increase.
D) decrease.
D
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A permanent tax cut would likely ________ consumption spending ________ than would a tax rebate like the one issued in 2008
A) decrease; more B) increase; less C) increase; more D) decrease; less
The point at which the burden of a tax ultimately rests is known as the
a. effect of the tax. b. impact of the tax. c. incidence of the tax. d. direction of the tax.
If the federal government balanced its budget, its tax revenues would be equal to its expenditures.
Answer the following statement true (T) or false (F)
Command systems in the Soviet Union and pre-reform China failed primarily because of:
A. the failure to accumulate and use capital. B. greater resource scarcity than in market systems. C. the failure to specialize in production. D. coordination and incentive problems.