Suppose a taxpayer has an income of $50,000 and a taxable income of $45,000, and pays $5,000 in taxes. If the taxpayer talks of being taxed at a 10 percent tax rate, she is referring to the

In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if

A) the marginal propensity to consume (MPC) is lower. B) the marginal propensity to consume (MPC) is higher. C) the average propensity to save (APS) is higher. D) the average propensity to save (APS) is lower.

When negative externalities from production exist, the deadweight loss from a competitive market may be larger than with a monopoly

What will be an ideal response?