Any point within the utility possibility frontier is:

If the income tax rate is 20 percent and the tax rate on consumption expenditure is 15 percent, then the tax wedge is

A) 2 percent. B) 35 percent. C) 300 percent. D) 5 percent. E) None of the above answers is correct.

A budget deficit ________

A) may have stimulative effects on economic activity in the short run B) contributes to lower interest rates in the long run C) is likely to increase future productive capacity in the long run D) all of the above E) none of the above