The higher the marginal income tax rate, the
a. higher the MPC out of disposable income.
b. lower the MPC out of disposable income.
c. higher the autonomous expenditure multiplier.
d. lower the autonomous expenditure multiplier.
e. None of the above
D
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Each point along a nation's production possibilities frontier represents efficient use of all resources
a. True b. False
Suppose a Canadian investor buys a one-year U.S. government bond that pays 7 percent interest. If the U.S. dollar appreciates 4 percent against the Canadian dollar during the year, what must be the yield on a comparable Canadian government bond for interest rate parity to hold?
a. 3 percent b. 4 percent c. 7 percent d. 10 percent e. 11 percent
If people begin to hold more cash, the money multiplier process will
a. increase in intensity. b. remain the same. c. decrease in actual size. d. cause larger amounts of excess reserves.
The demand for soap is more elastic than the demand for Dove soap
a. True b. False Indicate whether the statement is true or false