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Author Question: The government reduces the corporate profits tax. As a result, corporate profits increase. This will ... (Read 331 times)

mmm

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Question 1

Which of the following is 
not true of a change in dividend payments?


◦ There is no income effect because a change in dividend payments does not change a household's permanent income.
◦ There is no income effect because a change in dividend payments does not change the trade-off between work and leisure.
◦ There is no substitution effect because a change in dividend payments does not change a household's permanent income.
◦ All of these

Question 2

The government reduces the corporate profits tax. As a result, corporate profits increase. This will ________ the nonlabor income of households, causing consumption to ________ and labor supply to ________.


◦ decrease; decrease; increase
◦ decrease; decrease; decrease
◦ increase; increase; decrease
◦ increase; increase; increase


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Marked as best answer by mmm on Apr 19, 2019

cascooper22

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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