According to the ability-to-pay principle, it is fair for people to pay taxes based on the amount of government services that they receive
a. True
b. False
Indicate whether the statement is true or false
False
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The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. 
Running a negative campaign is ________ for the ________ candidate.
A. a dominant strategy; Democratic B. neither a dominant nor dominated strategy; Republican C. a dominated strategy; Democratic D. a dominated strategy; Republican
Which of the following statements is an example of positive economic analysis?
A) The inflation rate is too high. B) The government should worry less about inflation and more about unemployment. C) If the government increases the rate of growth of the money supply, the inflation rate will increase, ceteris paribus. D) The elderly live on a fixed income, so the government has an obligation to keep inflation rates low.
Suppose Bob withdraws money from his checking account and deposits it into his savings account. What happens to M2?
A. It decreases. B. It increases. C. It stays the same. D. The effect is unknown.
In the ________ increases in the supply of money will ________.
A. short run; raise total demand and output B. long run; raise total demand and output C. long run; lead to lower prices D. short run; decrease total demand and output