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1. According to the Bureau of Labor Statistics, the distribution of consumer expenditures
a. has a HiLo ratio greater than income ratio.
b. has a HiLo ratio equal to income ratio.
c. has a HiLo ratio less than income ratio.
d. shows that the people in this country are not poor.
e. is not a good measure to show income equality.
2. If the negative income tax rate is set at 50 percent and the income floor is set at $5,000, a family that earns $3,000 would have a total income (including the income tax transfer) of
a. $5,000.
b. $3,000.
c. $2,500.
d. $6,500.
e. $8,000.
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Explicate Illustrate what happens to the interest rates when the Fed makes open market bond purchases.
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