If the tax is $500 on an income of $2,500, the income tax rate is
a. 20 percent
b. 25 percent
c. 10 percent
d. 5 percent
e. 50 percent
A
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Suppose you drive a car that gets good gas mileage, and you notice that more and more people are driving gas-guzzling cars. Their increased demand for gas:
A. does not change the price you pay, but it reduces the quantity of gas supplied. B. does not affect you. C. is likely to cause the price you pay for gas to increase. D. is likely to cause the price you pay for gas to decrease.
When looking at economic growth in a country, the distribution of output and income
A) is shared equally. B) is skewed toward the lowest quintile of the population. C) generally follows predictable patterns. D) is not taken into consideration.
A bank receives a demand deposit of $5,000 . The bank loans out $3,500 of this deposit and increases its excess reserves by $500 . What is the required reserve ratio?
a. 10% b. 20% c. 40% d. 60%
The empirical data reveals the velocity of M2 to be:
A. relatively stable in the long run. B. higher than the velocity of M1. C. stable only when measured annually. D. highly volatile in the long run.