Multiple Choice
Which of the following events would likely cause the largest decrease in current consumption?
A) A one- time decrease in income (e.g. a bonus) of $4000.
B) A permanent decrease in annual salary of $2000.
C) A one- time tax increase of $4000.
D) Both A and C.
E) Both B and C.
Correct Answer:
Verified
Correct Answer:
Verified
Q49: Which of the following will occur when
Q50: A decrease in the rate of depreciation
Q51: The "life cycle" and "permanent income" theories
Q52: Assume the following: (1) the real cost
Q53: Which of the following is a reason
Q54: Suppose an individual experiences a $25,000 decrease
Q56: Explain each of the determinants of the
Q57: An increase in which of the following
Q58: The data shows that total profit in
Q59: Assume that firms experience an increase in