The consumption function will shift for all of the following reasons except:
a. a change in a household's real assets.
b. a change in interest rates.
c. expectations of price changes.
d. changes in a household's disposable incomes.
e. changes in taxation policy.
QUESTION 2A person who is in a 31 percent marginal tax bracket and has a total taxable income of 100,000 will owe 31,000 in taxes.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3GATT stands for:
a. Good and Total Trade.
b. General Agreement on Tariffs and Trade.
c. Greater Agreements Toward Trade.
d. Gold and Trade Totals.
e. Greater Area Trade Transactions.
QUESTION 4If people expect prices to fall in the future,
a. their consumption function in the present will shift downward.
b. their consumption function in the present will shift upward.
c. their consumption function in the present will be unchanged.
d. they will increase their current levels of consumption by moving up along their consumption functions.
e. they will decrease their current levels of consumption by moving down along their consumption functions.
QUESTION 5The Social Security payroll tax tends to be regressive.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Since World War II, tariff reductions have occurred in large part because of negotiations under the:
a. Industry and Trade Administration Act. b. Employment Act.
c. Monetary Control Act. d. General Agreement on Tariffs and Trade.
QUESTION 7The relationship between consumption and disposable income is the:
a. spending function.
b. consumption function.
c. autonomous consumption.
d. household consumer spending
e. household spending function.
Quick Reply
