According to Keynes's Theory of Liquidity Preference,velocity Increases When

question 46

Multiple Choice

According to Keynes's theory of liquidity preference,velocity increases when

• A)income increases.
• B)wealth increases.
• C)brokerage commissions increase.
• D)interest rates increase.

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Definitions:

Federal Marginal Income Tax

pertains to the portion of tax applied to an individual's or entity's last dollar of income, under the federal tax system, which uses progressively higher rates for higher income levels.

Tax Bracket

Categories at varying tax rates applied to ranges of income; the higher the income, the higher the percentage of tax levied.

Progressive

Pertains to political and social movements that aim for reforms and advancements by advocating for changes in economic, social, and political structures.

Taxable Income

The portion of an individual's or a company's income used to determine how much tax they owe to the government in a given tax year.