The higher the marginal income tax rate, the
a. higher the MPC out of disposable income.
b. lower the MPC out of disposable income.
c. higher the autonomous expenditure multiplier.
d. lower the autonomous expenditure multiplier.
e. None of the above
D
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When the U.S. government buys aircraft from BAe, a British corporation, it pays for them using
A) euros. B) pounds. C) dollars. D) foreign exchange rates.
The Federal Open Market Committee
a. operates with almost complete discretion over monetary policy. b. is required to increase the money supply by a given growth rate each year. c. is required to keep short-term interest rates within a range set by Congress. d. is required by its charter to change the money supply using a complex formula that concerns the tradeoff between inflation and unemployment.