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
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
- The supply of loanable funds, or “national saving,” is<br/>equal to ____ A: income - consumption. B: income - consumption - taxes. C: income - consumption - government spending. D: income - consumption - government spending - taxes.
- 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
- 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
- An increase in taxes on labor income decreases potential GDP.