A consumption function with taxes lies above a consumption function without taxes

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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Cost-plus pricing would be consistent with selecting the profit-maximizing price when

A) the demand for the firm's product is unit elastic. B) consumers value the product beyond its marginal cost. C) a firm has no difficulty estimating its demand curve. D) it results in a price that causes quantity sold to be where marginal revenue equals marginal cost.

Economics

The present value of $1 payable in two years is:

a. $1. b. $1/(1 + 2r). c. $1/(1 – 2r). d. $1/(1 + r)2.

Economics