If the federal government where to raise the income tax rates, would this have any impact on a state's cost of borrowing funds? Explain
What will be an ideal response?
Yes, if the federal government raises income tax rates, demand for municipal bonds which are federal income tax exempt would increase. This would lower the interest rate on the municipal bonds thus lowering the cost to the state of borrowing funds.
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If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is
A) 5 percent. B) 10 percent. C) 20 percent. D) 2 percent.
Opportunity cost exists because
A) of scarcity. B) prices must adjust to eliminate shortages. C) production could not occur without the opportunity cost of using resources. D) the value of economic goods is positive while the value of goods is zero.
Which firm provides the better signal when trying to decide which of the? firms' stock to? buy?
A. Firm? D, which? hasn't been under SEC investigation for over 5 years. B. Firm? C, which has seen its stock go up by? $20 per share in the last week. C. Firm? B, which uses an internal group for auditing. D. Firm? A, which uses an independent accounting firm for auditing.
A perfectly elastic demand curve has an elasticity coefficient of:
a. 0. b. infinity. c. 1. d. less than 1.