If all variable taxes in the United States were removed and only fixed taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward and become steeper.
b. The expenditure schedule will shift upward and become less steep.
c. The expenditure schedule will shift downward and become less steep.
d. The expenditure schedule will shift downward and become steeper.
a
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Households receive their income in the circular flow diagram by
A) obtaining dividends and interest payments. B) selling the use of their property. C) selling resources they own to business firms. D) selling the goods they produce at home.
Suppose First National Bank has $200 million of assets and $20 million of equity capital
If First National has a 2% return on assets (ROA), what is its return on equity (ROE)? Suppose First National's equity capital declines to $10 million, while its assets and ROA are unchanged. What is First National's ROE now?