If a person were in the 20% tax bracket and given the choice of a $500 credit or a $2500 deduction,
A. he would not care. They would constitute the same tax benefit.
B. he would take the credit every time.
C. he would not qualify for either.
D. he would take the deduction every time.
Answer: A
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Governments grant patents to encourage
A) low prices. B) firms to form public enterprises. C) research and development on new products. D) competition.
Economists who support a monetary rule as opposed to an activist monetary policy believe that the effectiveness lag in monetary policy is
A) short and variable, policy changes affect AD quickly and are predictable. B) zero, policy changes have an immediate effect on expenditures. C) long and variable, policy changes affect AD slowly over time and are unpredictable. D) long, but predictable.
If in the third quarter of 2016 total investment spending was $4,768 billion and depreciation was $3,292 billion, then the amount counted in GDP, which is known as gross investment, would be:
A. $1,476 billion. B. $3,292 billion. C. $4,768 billion. D. $8,060 billion.
The primary motivation for private foreign investment in developing nations is
A. the potential for high rates of return. B. to do research in countries with fewer social regulations. C. to improve the standard of living for workers. D. to eradicate poverty.