If a tax takes a constant fraction of income as income rises, it is

One example of thinking at the margin is:

a) determining whether it is better to spend your savings on a new CD player or on a television b) deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time c) putting all your money in a savings account because the interest rates are so high d) deciding to buy a car you don't really like because it is significantly less expensive than the one you want

According to the quantity theory of money, a 10 percent increase in the quantity of money ultimately leads to a 10 percent increase in

A) real national income. B) real GDP. C) the price level. D) velocity.