This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If your income and the price level both rise by 5 percent, and you think you now have more real ... (Read 79 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
If your income and the price level both rise by 5 percent, and you think you now have more real income, you are suffering from
 
  A) diminishing marginal expectations.
  B) leakages.
  C) injections.
  D) money illusion.

Question 2

According to dynamic tax analysis, will continuing to push up the tax lead to steady increases in tax revenues? Why?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tanna.moeller

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

In dynamic tax analysis, the tax base will eventually decline for ever-higher tax rates. This means that tax revenues will eventually fall at sufficiently high tax rates.


MirandaLo

  • Member
  • Posts: 538
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

dantucker

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

The central dogma of genetics at the molecular level. The central dogma of genetics at the molecular level.
Any number of crossovers gives 50 percent recombinants Any number of crossovers gives 50 percent recombinants
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Distribution of the Income of Americans Distribution of the Income of Americans
Outcome of myocardial infarction. Forty percent of 1-week survivors have late complications ... Outcome of myocardial infarction. Forty percent of 1-week survivors have late complications ...
Ramey's study, children from poverty-level families IQ experiment Ramey's study, children from poverty-level families IQ experiment
Video: Humerus Adduction Animation

For a complete list of videos, visit our video library