If the savings function is of the form S = - 200 + (0.1)YD and the marginal income tax rate is t = 0.2, an increase in income of 200 will increase consumption by
A: 180
B: 144
C: 80
D: 72
E: 20
A: 180
B: 144
C: 80
D: 72
E: 20
举一反三
- Which of the following will NOT happen if the income tax rate (t) is increased? A: the expenditure multiplier and consumption will both decrease B: disposable income, saving, and consumption will all decrease C: consumption and income both will decrease, but saving will increase D: the full-employment budget surplus will increase E: autonomous spending will stay the same but national income will decrease
- a good (or service) whose consumption declines as income rises and increases as income decreases increase in income=decrease in consumption decrease in income=increase in consumption
- Which are the impacts of higher tax rates on net present value？ A: The tax shield effect of depreciation increase B: The tax shield effect of depreciation decrease C: the income tax increase D: the income tax decrease
- The marginal tax rate is the rate of tax that will be paid on the next dollar of income or the rate of tax that will be saved by the next dollar of deduction。（)
- A large decrease in the income tax rate will most likely cause A: a fairly large increase in aggregate demand B: a fairly small increase in aggregate supply C: an increase in the price level D: all of the above E: none of the above