A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it
a. encourages illegitimate births because single women with children receive higher payments.
b. rewards laziness because it provides payments to those with low incomes regardless of their work effort.
c. does not help the poor who are unemployed.
d. creates unemployment by increasing the wage paid to unskilled workers above the equilibrium wage.
c
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According to the permanent income hypothesis, permanent income is to ________ as transitory income is to ________
A) consumption; saving B) certain; hypothetical C) wealth; gambling D) saving; borrowing
The aggregate demand curve is Y = 15 - 0.2? when the inflation rate falls from 6 percent to 5 percent. Then, output increases from 13.8 to 17. The response of monetary policy to the inflation decline has been ________
A) autonomous tightening B) automatic adjustment C) autonomous easing D) to increase autonomous spending E) none of the above