In a regressive tax system
The amount of tax paid increases with income
The average rate of tax decreases with more income
The average rate of tax falls as income increases
The average rate of tax is constant as income increases
A fall in interest rates is likely to
Increase aggregate demand
Increase savings
Decrease consumption
Decrease exports
The precautionary demand for money is
An idle balance
An active balance
Directly related to interest rates
Inversely related to income
If there is cyclical unemployment in the economy the government might
Increase interest rates
Encourage savings
cut taxes
Reduce government spending
The 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
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
