A government might use tax to
Discourage consumption of positive externalities
Discourage consumption of public goods
Discourage consumption of merit goods
Discourage consumption of negative externalities
The marginal rate of tax paid is
The total tax paid / total income
Total income / total tax paid
Change in the tax paid / change in income
Change in income / change in tax paid
In perfect competition
A few firms dominate the industry
Firms are price makers
There are many buyers but few sellers
There are many buyers and sellers
A deflationary policy could include:
Increasing injections
Reducing taxation rates
Reducing interest rates
Reducing government spending
The marginal propensity to consume in a less developed country is likely to be
Less than 0
Nearly 0
High
LOw
To speculative demand for money occurs when:
Individuals hold money just in case an emergency happens
Individuals hold money to buy things
Individuals hold money rather than other assets because they are worried about the price of the other assets falling.
Individuals hold money to shop
