As a result of an increase in the personal income tax rate, consumers are likely to
A) spend less. B) earn more money. C) save more. D) spend more.
A
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Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a sole proprietorship. What is one disadvantage to Jeremy of setting up his business as a sole proprietorship?
A) As a sole proprietor, Jeremy would face unlimited liability. B) As a sole proprietor, Jeremy would be subject to significant rules and regulations. C) As a sole proprietor, Jeremy would be taxed twice. D) As a sole proprietor, Jeremy would not have control of the business.
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 belt in Morocco?
A) 1/2 of a sword B) 1 sword C) 1.5 swords D) 2 swords
Gasoline and bicycles are substitutes in consumption. Suppose we increase the federal gasoline tax to $1 per gallon. What are the initial changes that result from the tax as these markets adjust to a new general equilibrium?
A) Gasoline price rises, demand for bicycles shift s leftward. B) Gasoline price rises, demand for bicycles shifts rightward. C) Gasoline price rises, move downward along bicycle demand curve. D) Gasoline price rises, move upward along bicycle demand curve.
Total spending will equal total output
a. after inventory adjustments b. only when total leakages are equal to total injections c. by the end of every year d. only when the sum of saving and investment equals the sum of net taxes and government expenditures e. saving is equal to net taxes