________ holds that those with equal ability to pay should bear equal tax burdens.

A. Vertical equity
B. Progressive tax theory
C. Horizontal equity
D. The benefits-received principle


Answer: C

Economics

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Suppose firms become more optimistic about the economy's ability to avoid a recession and hence the expected profit increases. As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________

A) leftward; rises B) rightward; rises C) rightward; does not change D) leftward; falls E) rightward; falls

Economics

How do markets provide for an efficient allocation of scarce resources?

What will be an ideal response?

Economics

Which of the following institutions is not subject to Federal Reserve's reserve requirements?

A) A state-chartered commercial bank B) A savings and loan association C) A money market mutual fund D) A credit union

Economics

The permanent-income hypothesis was developed in the 1950s by economist

A) Edward Prescott. B) James Tobin. C) Robert Solow. D) Milton Friedman.

Economics