A transmission lag:
What will be an ideal response?
These legal changes take time to show up in actual tax forms and
government budgets. One solution is that changes can be made retroactive to speed up their implementation—for instance, a tax cut legislated now may apply to income received during the previous year. However, this is not always done.
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If the government provides a subsidy to producers, what is the effect of this policy in a supply and demand diagram?
A) The demand curve shifts leftward and the price rises. B) The supply curve shifts rightward and the price falls. C) The supply curve shifts leftward and the price falls. D) The supply curve shifts leftward and the price rises. E) The demand curve shifts rightward and the price rises.
Historically, the AMT has always affected a significant number of taxpayers
a. True b. False
The principle of comparative advantage says that
a. every individual should specialize in producing that good for which the absolute cost is the smallest b. the output of society as a whole will be the greatest if every individual specializes in producing that commodity for which his opportunity cost is the smallest c. monopoly power is gained by specializing in a large market and reducing costs d. monopoly power is gained by specializing in a small market and producing a differentiated product e. your financial investments should be "compared" in a common fashion to determine your maximum advantage
Initially a bank has a required reserve ratio of 15 percent and no excess reserves. If $10,000 is deposited in the bank, then, ceteris paribus,
A. This bank can increase its loans by $1,500. B. This bank can increase its loans by $8,500. C. Total reserves will increase by $8,500. D. Required reserves will increase by $10,000.