In a proportional tax system, ________
A) the average tax rate faced by an individual exceeds the marginal tax rate
B) the marginal tax rate faced by an individual exceeds the average tax rate
C) the average tax rate equals the marginal tax rate
D) the marginal tax rate faced by all households are equal
C
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If the Fed wants to reduce bank reserves, it can:
A. Raise the discount rate or buy bonds on the open market. B. Reduce the minimum reserve ratio or sell bonds on the open market. C. Raise the discount rate or sell bonds on the open market. D. Decrease the minimum reserve ratio or reduce the discount rate.
A decrease in the marginal factor cost of labor will
A) lead to an decrease in the quantity demanded of labor. B) induce a firm to hire fewer workers. C) induce a firm to hire more workers. D) cause the value of the marginal product of labor to decrease.