Julie is in the 28 percent tax bracket. She earns an 8 percent rate of return after taxes on a tax-free municipal bond. What will the after-tax rate of return be on a taxable bond (with equal risk)?

Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day

What will be an ideal response?

During the late 1990s, Japan experienced reductions in the GDP deflator. Given this information, we know with certainty that

A) real GDP fell during these periods. B) real GDP did not change during these periods. C) the overall price level in Japan decreased during these periods. D) both real GDP and the overall price level decreased during these periods.