Use the Following Figure to Answer the Question

question 124

Multiple Choice

Use the following figure to answer the question :

-In the figure above,the factor responsible for the decline in the interest rate is

• A)a decline the price level.
• B)a decline in income.
• C)an increase in the money supply.
• D)a decline in the expected inflation rate.

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Definitions:

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total taxes paid by the total income.

Income

Cash inflow, regularly obtained, as compensation for work or earnings from invested capital.

Average Tax Rate

The average tax rate is the proportion of total taxable income paid in taxes, calculated by dividing the total tax paid by the total income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed.