Which of the following events would likely cause the largest increase in current consumption?
A) a permanent increase in annual salary of $2000
B) a one-time tax cut of $4000
C) a one-time increase in income (e.g. a bonus) of $4000
D) both B and C
A
Economics
You might also like to view...
Which of the following correctly identifies a difference between land and capital?
A) Land can be owned or rented by a firm, whereas capital cannot be owned. B) Capital can be owned or rented by a firm, whereas land cannot be owned. C) Land is created, whereas capital is a naturally occurring resource. D) Capital is created, whereas land is a naturally occurring resource.
Economics
Which of the following provides a positive externality?
a. smog b. inoculating children against measles c. hamburgers d. litter e. an increase in your earnings
Economics