Fearing that the economy was overheating, policymakers instituted a temporary tax surcharge in 1968. This temporary surtax:
A. successfully reduced consumption sufficiently to cool down the economy.
B. reduced savings but had little effect on consumption.
C. drastically reduced both savings and consumption.
D. increased savings and reduced consumption.
Answer: B
Economics
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Which of the following is negative for the "typical" consumer at some level of real disposable income?
A) average propensity to consume B) marginal propensity to save C) average propensity to save D) marginal propensity to consume
Economics
"Dividing the economic pie more equally may reduce the size of the economic pie." This argument is characterized as:
a. a conflict between full employment and economic growth. b. a form of discrimination. c. a conflict between equity and efficiency. d. untrue.
Economics