Assume that DeShawn is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, DeShawn loses $35 of his food stamp benefits and $20 in his Medicaid benefits. Also, DeShawn's income is taxed at a rate of 10 percent. Then, Peter's effective marginal tax rate is

The equation for the balanced budget multiplier can be written as

a. (1/1 – b) – (b/1 – b). b. (1/1 + b) + (? b/1 – b). c. (1/1 – b) + (b/1 + b). d. (1/1 + b) – (b/1 + b).

Unlike the 1930s, the Federal Reserve System followed an easy money policy in the first decade of the 2000s and, consequently, was able to prevent a severe recession from following a period of notably high economic activity

Indicate whether the statement is true or false