Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000 . How much would a family that earned $150,000 owe?
a. $34,000
b. $42,000
c. $50,000
d. $68,000
a
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If inflation in Mexico is lower than it is in the United States,
A) the purchasing power of the dollar in buying American goods will rise relative to the peso. B) the value of the peso will rise in the long run. C) the value of the dollar will rise in the long run. D) the purchasing power of the peso in buying Mexican goods will fall relative to the dollar.
A linear downward-sloping demand curve has price elasticities (in absolute values) that
A) remain constant along the demand curve. B) decrease as price decreases. C) increase as price decreases. D) are greater than or equal to 1.
Figure 17-8
Refer to . With trade, the price of wagons in this country is
a.
$8, with 70 wagons being produced in this country, 20 of which are exported.
b.
$8, with 90 wagons being produced in this country, 50 of which are exported.
c.
$5, with 40 wagons being produced in this country and another 30 wagons being imported.
d.
$5, with 40 wagons being produced in this country and another 50 wagons being imported.
An upward shift in the Fed's policy reaction function corresponds to a ________ the aggregate demand curve and an increase in exogenous spending corresponds to a ________ the aggregate demand curve.
A. shift left of; movement up B. shift left of; shift right of C. movement up; shift right of D. shift right of; shift left of