When government increases a fixed tax, consumption schedule
a. shifts downward in a parallel manner.
b. shifts upward in a parallel manner.
c. becomes horizontal.
d. becomes vertical.
a
Economics
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If interest rates fall,
A. the demand curve for loans will shift out. B. the discounted value now of money to be received in the future will fall. C. some previously unprofitable prospective investments will become profitable. D. the supply curve for loanable funds will shift in.
Economics
A current worker may save more towards retirement so that he or she will have more to leave his or her children later. This altruistic motive is known as the
A. altruism effect. B. bequest effect. C. income effect. D. savings effect.
Economics