Define the "consumption function."
What will be an ideal response?
The consumption function represents the relationship between consumer spending and income.
Economics
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Critical assumptions behind the Laffer curve include
a. labor supply is inelastic. b. investment is very responsive to higher savings and lower interest rates. c. the economy is above the marginal tax rate that maximizes tax revenue. d. both b and c. e. all of the above.
Economics
According to the Laffer curve, the federal tax rate affects:
a. incentive to work. b. savings. c. investment. d. tax revenue. e. All of these.
Economics