Which of the following is true of a proportional tax rate?
a. It is a tax rate that remains constant as the tax base changes
b. It is a tax rate that decreases as the tax base increases.
c. It is a tax rate that increases as the tax base increases.
d. It is a tax rate that increases as the tax base increases and then decreases as the tax base decreases.
a
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The desired reserve ratio is 10 percent. Joe deposits $1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred
Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B. Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary? A) $90 B) $900 C) $810 D) $1,000 E) $100
The demand and supply schedules for pizza are in the table above. If the government sets a maximum legal price of $2 per slice of pizza, then
A) there is a shortage of 20 slices of pizza. B) this maximum price is an example of a price floor. C) this maximum price is an example of a price ceiling. D) Both answers A and C are correct. E) Both answers B and C are correct.
Limits to self-interested payoff maximization that have been studied by behavioral economists include
a. limited cognitive ability. b. limited willpower. c. limits to self interest. d. all of the above.
If MPC = 0.80, how much should government spending change to increase real GDP by $500?
a. -100. b. +80. c. -80. d. +500. e. +100.