During 2008-2010, the U.S. economy showed signs of a(n)
a. mild recession.
b. recessionary gap.
c. inflationary gap.
d. deflationary gap.
b
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The foreign exchange system that has the highest foreign exchange risk is
A) the dirty floating exchange rate. B) the fixed exchange rate. C) the floating exchange rate. D) the Bretton Woods system.
Which of the following is true of a proportional tax rate? a. It is a tax rate that remains constant as the tax base changes
b. It is a tax rate that decreases as the tax base increases. c. It is a tax rate that increases as the tax base increases. d. It is a tax rate that increases as the tax base increases and then decreases as the tax base decreases.
Ryan spends an hour studying instead of going for a bike ride. Assume studying and bike riding were Ryan's only options for that hour. The opportunity cost to him of studying is Choose one answer.
a. the improvement in his grades from studying for the hour. b. the difference between the improvement in his grades and the enjoyment from bike riding. c. the enjoyment and exercise he would have received from bike riding. d. zero since neither activity required Ryan to spend any money. e. the value of the knowledge he gained by studying.
When income is $15,000, the amount of income income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The marginal tax rate in this case is
A. 20 percent. B. 15 percent. C. 13.3 percent. D. 25 percent.