Author Question: From the net tax function: T = t0 + t1Y, where t0 < 0 and t1 > 0, it follows that, as income ... (Read 14 times)

vinney12 · **on:** Jun 30, 2018

From the net tax function: T = t0 + t1Y, where t0 < 0 and t1 > 0, it follows that, as income rises

a. average taxes falls and the surplus declines.
b. average taxes rises and the deficit increases.
c. average taxes falls and the deficit declines.
d. Average taxes and the deficit do not change.

Question 2

From 1789 to 1838, state banks

(a) served as financial intermediations and paid out paper money to borrowers.
(b) were corporations.
(c) engaged in agricultural activities.
(d) established demand deposits against which checks could be written by the borrower.