A government may decide that by running large budget deficits it can make crucial long-term investments in human capital and physical infrastructure that will build the long-term __________________ of a country.

A deferred payment scheme is more likely to be accepted by a worker if

A) the firm has a reputation of not firing senior employees to save pension costs. B) the worker is very young. C) the worker is very old. D) None of the above.

A tax is proportional if, as a person's income rises, the

a. tax rate remains unchanged b. tax rate falls c. tax rate rises d. amount of the tax remains unchanged e. amount of the tax falls