At the equilibrium real interest rate in the open-economy macroeconomic model, the equilibrium quantity of loanable funds equals
a. net capital outflow.
b. domestic investment.
c. foreign currency supplied.
d. national saving.
d
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The principle of vertical equity is satisfied when _____
a. individuals with a greater ability to pay have higher taxes than individuals with a lower ability to pay b. individuals receiving higher benefits from a government program pay higher taxes than those receiving lower benefits c. taxes increase as family size increases d. taxes on higher income individuals are more efficient than the taxes on lower income individuals
All of the following are true for sequential games except which one?
A) Backward induction can be used to determine the Nash equilibrium of sequential games. B) Forward induction can be used to determine the Nash equilibrium of sequential games. C) A classic example of a sequential game is an entry game. D) Sequential games are illustrated as game trees.
The administrative burden of taxation relates to the a. the disincentive for individuals and businesses to work generate income
b. individuals' cost of preparing tax returns and the government's cost of enforcing tax laws. c. the opportunity cost of social programs. d. the net interest that must be paid on the national debt.
Frank Murphy is considering how many snowmobiles to purchase for his snowmobile rental business. Below are his estimates of the number of snowmobile rentals per year, depending on the number of snowmobiles available.Number ofSnowmobilesYearlyrentals1902170324043005350After paying all non-interest expenses, expenses Frank expects to net $10 per rental. Each snowmobile costs $15,000. How many snowmobiles should Frank purchase if the real interest rate is 6.5%?
A. 1. B. 2. C. 0. D. 4.