Multiple Choice
Assume that the consumption function is given by C = 150 + 0.85(Y - T) and the tax function is given by T = t + t Y. If 0 1
T increases by 1 unit, then consumption:
0
A) decreases by 0.85 units.
B) decreases by 0.15 units.
C) increases by 0.15 units.D.increases by 0.85 units.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Public saving is:<br>A) income minus consumption minus
Q21: Government transfer payments:<br>A)are included as part of
Q23: The factor that makes national saving equal
Q28: If the production function describing an economy
Q55: Public saving is:<br>A) always positive.<br>B) always negative.<br>C)
Q63: According to Euler's theorem, if competitive firms
Q79: If the consumption function is given by
Q111: Since 1960, the U.S. ratio of labor
Q129: A competitive, profit-maximizing firm hires labor until
Q153: Total investment in the United States averages