Recall the Application. One difference between a value-added tax and an income tax is the value-added tax
A) is a progressive tax. B) is not a consumption tax.
C) does not penalize individuals who save. D) is difficult to collect.
C
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Which of the following would be counted as investment in the national income accounts?
a. the purchase of a newly issued stock b. the purchase of a newly built apartment house c. the purchase of a newly minted coin d. the payment of tuition at a private college
What is the distinction between a movement along the consumption function and a shift of the consumption function?
a. A movement along the consumption function is caused by a change in income and a shift of the consumption function is caused by a nonincome determinant. b. A movement along the consumption function is caused by a change in interest rates and a shift of the consumption function is caused by an income determinant. c. A movement along the consumption function is caused by a change in net wealth and a shift of the consumption function is caused by an income determinant. d. There is not distinction between the two, they are the same movement.