Actions by the Federal government that decrease the progressivity of the tax system:

A. Decrease the amount of government spending

B. Increase the effect of automatic stabilizers

C. Decrease the effect of automatic stabilizers

D. Increase the multiplier effect

C. Decrease the effect of automatic stabilizers

Economics

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If expectations about future income change, there is

A) a decrease saving if people expect income to decrease in the future. B) a decrease in saving if people expect income to increase in the future. C) an increase in saving if people expect income to increase in the future. D) no change in saving until income actually changes. E) a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.

Economics

Currently, a three-year Treasury note pays 4.75%. Assuming that your tax rate is 20%, what is the minimum interest rate that you would you need to earn on a tax-free municipal bond in order to buy it instead?

A) 0.95% B) 3.8% C) 5.7% D) 15.25%

Economics