The Laffer Curve only applies to income taxes
a. True b. False
b
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Which term refers to a legally established minimum price that firms may charge?
A) a tariff B) a price ceiling C) a subsidy D) a price floor
If there is an increase in taxes on business firms in a small open economy, it causes the current account to ________ and the equilibrium quantity of saving to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
How does the interest paid on reserves set a floor for the federal funds rate?
What will be an ideal response?
Which of the following is most likely to help promote the efficient use of resources and rapid economic growth?
a. high tariffs and imposition of other trade restrictions b. high marginal tax rates c. an open and competitive capital market d. high rates of inflation